The most prominent cryptocurrency exchange, Binance, has announced its intention to launch a new service focused on XRP, the sixth most valuable cryptocurrency. Notably, Binance will introduce XRP/USDT Options on the Binance Options RFQ next Monday, March 11. The exchange announced the move in a statement via its official website today.
According to the announcement, Binance will unveil XRP-based incentives to expand the list of trading options available on Binance Options RFQ and enhance users' trading experience. Notably, RFQ stands for “Request for Quotation”.
With the Binance Options RFQ, users can directly request quotes for options trades from the Binance OTC Trading Desk. The service provides institutional-grade liquidity, allowing users to execute large-scale options trades over the counter at competitive prices and without fees.
Binance has noted that the upcoming XRP/USDT Options will be European-style options contracts. In contrast to American options, Binance Options, which are European Options contracts, can only be exercised upon expiration but can be traded at the current market price before expiration.
The exchange has emphasized that Options trading involves significant risks, offering the potential for significant profits as well as losses. The maximum loss to the Option buyer is limited to the premium paid to acquire the Option. Users who participate in Binance Options trading will be bound by the terms outlined in the Binance Options Services Agreement.
Notably, Binance's announcement of the upcoming launch of its XRP Options trading service had no notable impact on XRP price. At press time, the asset traded at $0.6176, with a loss of 1.23%. XRP's current price decline became more pronounced over the past few hours following Bitcoin's slight retracement.
