Pinnacle cryptocurrency exchange Binance has officially launched Bitcoin (BTC) options on its futures trading platform.

Confirming hints earlier this month, the rollout was appear this morning, April 13. Information technology is, for now, limited to the exchange's mobile app.

Binance offering U.S.-style Bitcoin options contracts

Options contracts offering traders the chance to buy either a right to buy (a phone call choice) or sell (a put selection) on a given asset at a specified "strike price." Binance is offering the American, as opposed to the European, version of the derivative, in which traders tin can exercise their rights — i.e. settle the contract at the called strike price — at whatsoever time before or on the expiry date itself.

For Binance'south  BTC/Tether (USDT) options contracts, traders commencement transfer their USDT holdings from their spot wallet to their futures wallet and choose an expiry engagement, ranging from x minutes to one mean solar day.

In a notation to traders, Binance indicates that a fixed value premium must be paid at the starting time, meaning that any prospective profits on trades will exist internet, i.e. profits minus the premium. The exchange cautions that:

"In that location is no guarantee that your options purchase will execute at a profit afterward the premium has been deducted. Near options purchases will not be profitable, just a minority will exist very profitable. Please use at your own discretion."

Options contracts in the crypto space

Equally previously reported,  Malta-based cryptocurrency exchange OKEx has already launched Bitcoin options trading for a select group of traders in December 2022, ahead of their public launch early on this yr.

Chicago Mercantile Exchange Group announced plans to launch an options product for Bitcoin futures back in September, later on indicating it was anticipating loftier demand in Asia in item.