Binance is the world’s largest cryptocurrency exchange. The exchange, which has the largest cryptocurrency liquidity and offers a wide range of cryptocurrencies, offers futures, P2P trading, options and more trading features in addition to spot markets.
With both an intuitive interface and user-oriented design, Binance is one of the best crypto platforms for options trading. Crypto options trading is a form of trading included within derivatives trading. This format allows cryptocurrency exchanges to help their users to profit with more trading options in the cryptocurrency market.
What is Binance Options?
Option are a type of derivative that allows users trade in the market at a fixed premium and hedge against market risks. Crypto options function similarly to the options you would find in traditional markets, except that the underlying assets are cryptocurrencies such as Bitcoin and Ethereum instead of stocks. Put options can be used to profit from a cryptocurrency decreasing the price, while you would use a call option to bet on a cryptocurrency increasing in price.
Binance launched its new options platform on both its website and mobile app in September 2022. The trading platform, which boasts high liquidity and low fees, charges a transaction fee of 0.02% and an exercise fee of 0.015%.
Binance fixes option positions by pricing them in USDT. In this way, investors can easily calculate profit and loss even during high volatility market periods.
Call options are used to buy assets at a certain price, while put options are used to sell assets at a certain price. For example, when buying Ethereum options, you actually pay a premium to get the right to sell or buy Ethereum at a certain price on a certain date.
This method is a good option for traders who want to maximize their profits in a bear or bull market. Option holders can exercise their option positions until the contract expiration date. When this date comes, the option position is closed and a profit or loss is made according to the price of the asset.
There is also the option to sell the asset at the current market price by closing the position early. However, it’s worth keeping in mind that Binance only allows European-style options contracts, which can only be exercised on the contract expiration date. Binance continues to add more options contracts to help you expand your crypto trading strategy.
What do I like about trading Binance Options?
Binance Options has many advantages over other platforms. Among these advantages are the following:
- User-focused experience
- Competitive fees
- Support for stablecoins
Among these advantages, the point that improves the user experience the most is the ability to buy options with stablecoins. The most useful advantage in calculating PNL, calculating profits between certain dates, and taking notes on capital and cost is that Binance Options are priced with stablecoins. This makes risk analysis and calculations easy, even in volatile markets.
In addition, the platform’s intuitive interface makes it possible to exchange assets between multiple trading products and make API connections. This allows sticking to strategies and increasing efficiency when trading options.
How to trade Binance Options
Options, already a complex trading tool, carry various risks for those who do not have good knowledge of this trading method. Currently, Binance Options supports crypto options tied to Bitcoin and Ethereum.
To start trading Options on Binance, you must first be a Binance user. You can create an account by clicking the Binance sign up link. Then you should click on the Derivatives tab and find the Options tab.
Those using the Binance App can access the Options trading page by tapping the Futures icon. To trade Options on crypto, you must transfer USDT from the crypto balance in your Spot wallet to your Options wallet.
The Binance Options interface may seem complicated at first glance, but once you learn it, it’s pretty easy.
In this interface you can see a list of available options. For example, for the date 2022-11-22, there are positions with a strike between $1100 and $1400. You can click the Preferences icon in the upper right corner to add different data to the table. When you click on the candle icon on any position line, you can see the candlestick chart and the order book. You can also find several different indicators on this chart.
You can create a buy or sell position with the Limit or BBO method from the right section, and you can see the margin details at the bottom.
What is the exclusive promotion for Binance Options?
Binance Options offers 30% options trading fee commission for affiliates and 30% trading fee discount for all options traders. Celebrating the launch of its trading platform again with a nice promotion, Binance offers special referral benefits to Binance Affiliates who refer their friends to Binance Options.
Users who refer their friends to Binance Options will be eligible to receive 30% of their friends’ trading fees. In addition, everyone using the platform will benefit from a 30% discount on all Options trading fees until the end of the year. Anyone who meets certain criteria can apply to become a Binance affiliate.
Options trading is always fraught with danger. Before approaching this trade, investors/traders should conduct extensive research and education. Binance Options is one of the most well-known cryptocurrency options trading platforms. Its user-friendly interface, low liquidity, and reasonable fees are attracting an increasing number of users.
Adnan is a crypto enthusiast who is always keeping an eye on the latest developments in the crypto ecosystem. He is an environmental engineer working on his MBA and has been following innovations in FinTech for several years. Adnan produces written content to review crypto projects and support the crypto community.