Binance to offer Bitcoin options?


The Binance exchange has been in the news a lot recently – today, we have some additional speculation on leaked indications that the exchange may be planning for new cryptocurrency options deliveries.


Earlier this week, we were talking about Binance’s acquisition of listing site corn CoinMarketCap all that that entails. Binance is also famous for broadening its fiat and crypto pairing availabilities through partnering with third-party payment companies to accommodate currencies like the Vietnamese and Thai national monies, as well as Australian and U.S. dollars and, to date, many other choices for international access to BNB.


The newest scoop on Binance shows a social media posting that looks like a prototype for options trading for Bitcoin/USDT.


According to reporting by Marie Huillet at Cointelegraph, Binance is keeping mum about its plans, which follow previous options rollouts by the Chicago Mercantile Exchange Group and OkEx.


Huillet also delivers a basic explanation of options contracts for the uninitiated:


“As a popular derivative that enables traders to hedge against asset price swings in either direction, an options contract offers the chance to purchase either a right to buy (a call option) or sell (a put option) a given asset at a specified ‘strike price’,” Huillet writes. “This strike price is determined on or before the contract’s expiration date.”


Realistically, options contracts allow buyers to read a menu of opportunities and essentially wager on where an asset’s value will be at a given time in the future. They are also used for hedging short or long positions on a given equity or asset.


Look for these types of developments as Binance continues to drive innovation and access to cryptocurrency markets.