Introduction to Binance Options

2020-12-23 16:20

https://fast.wistia.net/embed/iframe/gfudpeq251

An Overview of Binance Options

Binance Options provide individual and professional investors unparalleled access to crypto options trading with the following edges:

Stablecoin Options

Binance Options are priced and settled in stablecoin, which makes cost and profit calculations straightforward for investors. Unlike Coin-Margined Options, in periods of high volatility, Stablecoin Options allow investors to enter and exit positions stably and securely without having to worry about the nominal value of the underlying collateral drastically devaluing.

Competitive Fees

Binance is the largest crypto exchange in the world, working closely with sophisticated market makers to provide Options traders with one of the lowest fees in the market (0.02% transaction fees and 0.015% exercise fees).

Low Capital Requirement

With Binance Options, traders only have to pay the required Options Premium to get the same exposure as holding an equivalent Futures or Spot position. As such, Options are a great way to make leverage trades due to the lower capital requirements.

What is the difference between Binance Futures and Binance Options?

Options are standardized contracts that allow investors to trade an underlying asset at a predetermined price before a specific date (the expiration date) without the obligation to do so. In comparison, Futures contracts obligate the contract holder and issuer to buy or sell the underlying asset on a specified future date.You can refer to the table below to learn more about the difference between trading Options and Futures on Binance.

Binance Futures vs Binance Options

Binance Futures

Binance Options

Contract Modality
  • Traders are obligated to buy or sell the underlying asset on a future date
  • No expiry for Perpetual contracts
  • Expiry for Delivery
  • Options contracts only give traders the right but not the obligation to buy or sell the underlying asset
  • Have expiration dates
Settlement Asset
  • Stablecoin (USDTⓈ-M contracts)
  • Coin (Coin-M)
  • Stablecoin (USDT)
Margin Requirement
  • Requires initial margin to open a position
  • No margin requirement for Options buyers
  • Options buyers only need to put up the required Options premium
Leverage and Liquidation Risk
  • Insufficient margin can lead to liquidation for leverage trades
  • No liquidation for Options Buyers
  • Downside risk is limited to the Options Premium only
Upside / Downside Limits
  • Unlimited Upside
  • Downside capped at Margin Balance
  • Downside is capped at the Option Premium
  • Upside for Call Options is unlimited; Upside for Put Options is capped at Options Strike (underlying goes to 0)

Binance Options vs. other Crypto Exchanges’ Options

Binance Options

Other Exchanges’ Options

Underlying Index

Binance ETHUSDT Spot Index

Binance BTCUSDT Spot Index

ETH Spot Index

Expiries

Daily Options*
Weekly Options*

Monthly Options*

Quarterly Options*

Daily Options

Weekly Options

Monthly Options

Quarterly Options

Collateral Asset

USDT

ETH

Settlement Asset

USDT

ETH

Contract Size

1 ETH underlying
1 BTC underlying

1 ETH underlying

Strike Intervals

Delta range of 0.05 to 0.95

Delta range of 0.1 to 0.9

Tick size

0.1 USDT For ETH

1 USDT For BTC

0.0005 ETH

Transaction Fee (Retail Users)

0.02%, capped at 10% of the option’s value

0.03% or 0.0003 ETH, whichever is higher, capped at 12.5% of the option’s value

Exercise Fee

0.015%, capped at 10% of the option’s value

0.015%, capped at 12.5% of the option’s value

*Listing cycle and expiry availability are subject to change based on market demand. Please refer to the Binance Options trading page for the latest availability of option expiries.For more information about Binance Options, please refer to:

Register Now - Get up to 100 USDT in trading fee rebate (for verified users)