BlockBeats news, on August 4, according to CoinDesk, Binance announced on Monday the opening of the Bitcoin 'options writing' feature to all users in response to the strong demand from retail investors for more strategic and complex trading tools.
Options are a type of derivative contract that gives the buyer the right to buy or sell the underlying asset at a predetermined price on or before a specific date. Among them, call options grant the right to buy and represent an optimistic view of the market; while put options provide downside protection.
'Options writing' refers to the sale of call options or put options, similar to providing 'insurance' against the rise or fall of the underlying asset. The seller of the options (i.e., the writer) can receive the premium paid in advance as compensation.
