George Miller
Binance, a top cryptocurrency exchange globally, will launch its BNBUSDT and SOLUSDT Monthly Options on November 26, 2024, at 08:00 (UTC). Each order will have a minimum notational value of 0.001.
These options will follow a European-style format, meaning they can only be utilized at the time of expiration. Binance has specified that only Liquidity Providers and certain eligible clients can write (sell) options, while regular users will be limited to buying and selling them. New expiration dates for options will be available every Thursday at 08:00 UTC leading up to Friday expirations.
BNBUSDT and SOLUSDT Options Overview
This launch is part of Binance’s ongoing development of its derivatives market, following the introduction of ETH Options in 2020. Users are reminded to adhere to MiCA regulations, which place restrictions on unapproved stablecoins for EEA users. The addition of BNBUSDT and SOLUSDT options highlights Binance’s commitment to expanding its offerings.
The exchange has advised users that “Options writing on Binance is limited to Liquidity Providers and selected qualifying clients for risk management reasons.”
For those unfamiliar, Options are derivatives that provide the holder the right, but not the obligation, to buy or sell an asset at a set price on a specific date. This differs from Binance Futures, where traders are obligated to transact on a future date without any expiry.
For more information on trading options on Binance, refer to their official resource here.