By Ifaenyi Egede (Nigeria)
Bitcoin Options
Top cryptocurrency exchange platform, Binance has announced that it has added Bitcoin Options to the list of services rendered on its Binance Future trading exchange platform. When this article was put together, the crypto exchange outfit said the service is only usable on the mobile app with Android and Apple users the beneficiary.
BINANCE FUTURES DEBUT BITCOIN OPTIONS ON ITS PLATFORM
Binance Futures, a platform where users can make an exchange on cryptocurrencies with high leverage, and with the recent addition of Bitcoin options, its users can have access to services that help them manage their risk more. In a statement released, the crypto firm confirmed that its new service will afford its users the opportunity to buy BTC call and put options. Nevertheless, the service allows them to enjoy additional liquidity, enjoy longer low premiums and help them reduce spread with expiry between ten minutes to one day at market prices. Changpeng Zhao, founder and CEO of Binance, was quoted as saying:
“Options contract is a much-anticipated product, allowing the traders and miners to effectively buy insurance on their positions and for speculators to take advantage of the market movements as well. There are more features and products in the pipeline.”
The VP of Binance Futures, Aaron Gong, was on hand to shed more light on the number of coins that would be introduced to the platform when it starts its service. He was quoted as saying that the company is working as fast as possible to add more assets to the platform provided the “first pair picks up pace”. “At first, the feature is only available to Android and iOS users through their mobile apps. However, the team is also working to integrate it into the web platform.
BITCOIN OPTIONS: A NEW MARKET TO LOOK OUT FOR?
Bitcoin Options are new to the crypto market after Chicago Mercantile Exchange launched the asset in January 2020 as a result of increasing demand in cryptocurrencies. Options are useful for hedging but also satisfy speculation with the call and put options being the main types.
Call options can be explained as the price(strike price) in which a cryptocurrency is being transacted. It comes into play when the amount of an asset increase. Put options is explained basically as the assumption when the price of a commodity declines. The buyers and owners own the coin when the price is dropping and can sell it at the strike price they determine.
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