The cryptocurrency exchange Binance has launched European-style options on Bitcoin. The new derivative will allow traders to issue their own contracts.
#Binance Launches Vanilla Options Trading Platform
➡️ https://t.co/YqAuuDuhdA pic.twitter.com/xMoH6FiC93
— Binance (@binance) December 28, 2020
In April 2020, Binance introduced American-style options, giving traders the right to buy or sell a digital asset at a fixed price at any time before expiration. The European variant contemplates exercising the option on its last day of trading.
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The Vanilla Bitcoin Options contracts are settled in the stablecoin Tether (USDT). Traders can buy them for hedging and trading, or sell as issuers, unlike American options, the issuance of which is carried out by Binance.
The exchange’s representatives say the new instrument will appeal to institutional investors and shield users from market volatility.
The launch of European-style options followed the completion of тестирования сети Binance Vanilla Options in November.
As Changpeng Zhao noted, the number of institutional clients on the exchange has grown by 46% since the start of 2020.
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