Table Of Contents
Binance
options are a retail-friendly product that has been much anticipated by the community. It simplifies options trading to enhance users' trading experience and lowers the entry barrier for retail traders.
There are some advantages to trading Binance options. Here are the key benefits of trading with Binance options: Flexibility, short-duration strategies, easy to use, unlimited liquidity, competitive premium pricing, and high leverage with no liquidation risk.
- Flexibility Binance options are American-style options that can be exercised any time before the expiry date. In contrast, European-style options can only be exercised on the expiration date. In traditional options markets, American-style options are usually worth more because of the flexibility that it offers.
- Short-duration strategies Unlike traditional options, Binance Options offers short-duration contracts, ranging from 10 mins to 1 day. This allows users to trade with expiry windows as small as 10 minutes apart, providing a more comprehensive selection of option trading strategies.
- Easy to use Users need not go through the hassle of choosing over a range of strike prices and expiration dates. Instead, Binance options are designed with only one strike price, which is equivalent to the price of BTCUSDT on Binance Futures. Binance Options simplify options trading as it eliminates the need to keep track of multiple expiry dates and strike prices.
- Unlimited liquidity Binance is the sole-issuer and primary liquidity provider of the product. This means that Binance options have an uncapped supply, and users will always have quotations in any given period.
- Zero-fee model and Competitive premium pricing Users of Binance Options need not incur additional fees other than the premiums paid for the option. Premiums of Binance options are competitively priced. Given that Binance options are American-style and charge no transaction fees, Binance options may be a cheaper choice for options traders.
- High leverage with no liquidation risk Binance options offer high leverage so that users can gain exposure to the underlying asset with only paying a fraction of its overall cost. Additionally, users need not worry about liquidation risk that is often associated with leveraged trading. With Binance options, the maximum downside is the premium paid for the option. In other words, users of Binance options have a limited downside.
Full Details on how to Create Your Binance Account And Verify It.
If you don't verify your identity on binance, you can still trade. Learn more
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