Binance Launches ETH And XRP Options Trading
Not too long ago, Binance was in the spotlight when the crypto exchange Binance.US announced the OTC feature for big traders.
Catherine Coley, CEO of Binance.US announced this big event at the Consensus: Distributed – a virtual crypto conference hosted by CoinDesk.
It’s important to know that participants will be able to facilitate trades for their clients by processing orders above $10k.
Now, Binance is back with more juicy news.
Binance offers ETH and XRP options trading
Binance is now offering Ethereum and XRP options trading a month after launching Bitcoin options trading.
In a statement, the crypto exchange said that the updated version of the mobile app is now supporting options trading for BTC, ETH, and XRP, the leading cryptocurrencies by market cap.
Just to refresh your memory, options are contracts that are giving buyers the right, not the obligation, to buy the underlying asset at a predetermined price – this is known as the strike price on/before a certain date.
— Binance (@binance) May 25, 2020
“The premium is first deducted from the futures wallet balance, and only after is profit calculated. In rare cases, this deduction may cause the futures position to enter liquidation. Before placing an options order, please ensure that you have adequate free margin in your futures wallet balance,” Binance said as cited by the Daily Hodl.
Options trading also makes it easier for investors to reduce the risk of exposing their portfolio – this generates income and investors can hold a leveraged position in an asset it a lower price.
Binance also made sure to highlight the fact that this comes with potential losses.
“Most options purchases will not be profitable, but a minority will be very profitable. Please use at your own discretion.”
Catherine Colely is the CEO of Binance America, the US-based cryptocurrency exchange from Binance. Prior to her appointment of CEO at Bainance.US, Coley spent two years building out a global liquidity network at Ripple as their head of XRP institutional liquidity.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.