Popular crypto trading platform Binance has just announced a new option contract on its derivatives platform Binance Futures.
The exchange users will have access to an option for the platform's native token Binance Coin (BNB) from August 4 at 09:00 CET. This new investment tool will be available initially through the latest versions of the mobile apps for iOS and Android.
This is the second option of Binance Futures. The first one was launched back in mid-April and is linked to Bitcoin. According to the exchange:
"There is no guarantee that your options purchase will execute at a profit after the premium has been deducted. Most options purchases will not be profitable, but a minority will be very profitable. Please use at your own discretion".
Traders can only be buyers of Binance options, as Binance is the only issuer (seller of options). Therefore, there is no Binance Options order book. An option contract remains valid until the holder exercises the option at any time before the expiration date or when the option expires. The maximum loss on each position would be the premium paid for the options.
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