Binance, one of the world’s leading cryptocurrency exchanges, has announced the introduction of BNBUSDT and SOLUSDT Monthly Options, set to go live on November 26, 2024, at 08:00 (UTC). The minimal notational order value for BNB and SOL options would be 0.001 per order.
These monthly options will be European-style options, and hence, can only be exercised at expiration. Binance has reiterated that options writing (selling) will be restricted to Liquidity Providers and select qualified clients. General users will be restricted to buying and selling options only. When it comes to creation time for options, new options expiration dates will be added at 08:00 UTC every Thursday prior to Friday expirations.
BNBUSDT SOLUSDT Options
This launch follows Binance’s earlier introduction of ETH Options in 2020 as part of its phased rollout. Binance also reminded users of compliance requirements under MiCA regulations, where unauthorized stablecoins are subject to certain restrictions for EEA users. The addition of BNBUSDT and SOLUSDT, thus, marks the next step in expanding their derivatives offerings.
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Binance has cautioned users, “Please note that for risk management purposes, Options writing on Binance is reserved for Liquidity Providers and selected qualifying clients”.
For the uninitiated, Options are financial derivatives that give holders the right, but not the obligation, to buy or sell an underlying asset at a predetermined price and date, using two options: Call and Put Options. This process is different from that of Binance Futures, wherein traders are obligated to buy or sell the underlying asset on a future date with no expiry date.
For additional details on trading options on Binance, visit their official resources here.
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