- Following the launch of Bitcoin options in April, Binance has now also announced the availability of Ethereum and XRP option.
- Binance is the first trading platform to offer XRP options.
Binance, the world’s most popular crypto exchange, continues to work on further expanding its supremacy in the crypto market. Binance’s CEO, Changpeng Zhao is known for constantly introducing new products and expanding the exchange’s service offering through acquisitions. Binance has now announced that the exchange will expand its service offering by introducing option contracts for Ethereum and XRP.
Following the launch of Bitcoin Options in mid-April, the second and third largest cryptocurrencies on the Binance Options trading platform will follow about one month after the launch. It is also worth mentioning that Binance Options is the first exchange ever to offer XRP options.
Options are financial derivatives with a leverage effect that allow the buyer of the contracts to buy (call option) or sell (put option) Bitcoin at a certain price upon expiration. As the name suggests, there is therefore an option. With a call option, the buyer makes a profit if Bitcoin increases significantly by the end of the term. In a put option, on the other hand, the buyer makes a profit if Bitcoin falls sharply by the end of the term.
So far, Deribit has been the leading platform for Ethereum options and also the leader in Bitcoin options with over 75% market share. As with the futures contracts that Binance first issued for Bitcoin in September and where Binance is now one of the leading trading platforms, the exchange of “CZ” now appears to be moving into the options market.
As Zhao already announced in April, Binance will probably add further Altcoins in the coming weeks:
The Options contract is a highly anticipated product that allows traders and miners to effectively hedge their positions and allows speculators to benefit from market movements as well. There are other features and products in the pipeline.
The new Ethereum and XRP options are available immediately on Binance.com, as well as with the iOS App V 2.12.0 and Android App V 1.23.3. The smallest contract size for Ethereum is 0.001 ETH, the maximum is 200 ETH. For XRP the minimum is 0.1 XRP, while the maximum size is 200,000 XRP.
