Binance continues to set the pace for others in the crypto space. In its bid to deliver the best possible experience to crypto enthusiasts, the company keeps introducing new products and reinventing existing ones. Binance Options is one of the latest platforms to enjoy an upgrade.
According to Binance, the New Binance Options trading platform was launched to enable users to optimize trading opportunities. From what we’ve seen so far, the platform is certainly on the right track to achieve this. Already, people are taking advantage of Binance’s offers, enjoying 30% rebates on their trading fees, 30% commission on referrals’ option trading fees and several other goodies.
Before we take a closer look at Binance Options, let’s go through some of the key benefits of trading crypto options:
Crypto options are unique among crypto derivatives since they don’t force traders to buy or sell the underlying assets
Crypto options allow for multiple trades with the possibility of adopting different trading strategies
Crypto options are very flexible, creating opportunities for traders to profit from different market trends
In this post, we will discuss the most important things to know about Binance Options as well as how you can get started on the new platform and enjoy its many benefits.
Trade Crypto Options on Binance
What is Binance Options?
Binance Options is a trading product on the Binance exchange that allows users to trade crypto options, which are a type of derivative contract. An option contract gives the buyer has the right to purchase or sell an asset at a predetermined price and date, depending on the type of option they bought.
Users can either buy ‘Call Options’ or ‘Put Options’. While Call Options give you the right to buy, Put Options give you the right to sell the underlying asset. In any case, you are not under obligation to exercise the options.
Binance Options are restricted to Bitcoin, Ethereum and BNB as of the time of writing this piece. These options are settled in the USDT stablecoin. This makes the process of calculating profit and loss a lot easier. Other attractive features of Binance Options are high liquidity and low trading fees.
Binance Options pros:
High liquidity
Wide range of options contracts
Trades are priced and settled in the USDT stablecoin
Competitive fee model
Binance Options cons:
Options are complex trading contracts and it may be challenging for newbies to understand the basics of options trading
Currently, the platform only offers Bitcoin, Ethereum and BNB options
What is the Difference between Binance Options and Binance Futures?
Before we proceed, it is important to differentiate between Binance Options and Binance Futures as the two can be confusing. The first thing to understand is that Binance Options and Binance Futures are different platforms that allow for crypto options trading and crypto futures trading, respectively.
While crypto futures are derivative products through which buyers and sellers agree to trade at a predetermined price and date, crypto options are derivative contracts that give the purchaser the right to buy or sell an asset at a determined price or date.
One of the major differences between crypto options and crypto futures is that options are relatively lower risk because they don't force the purchaser to buy on the determined date. They only confer the right to buy which the buyer can exercise or ignore. Crypto futures, on the other hand, come with the obligation to buy.
Why you should explore Binance Options
Are you considering trading Binance Options? It may be a great decision to get started now. But what are the specific benefits you stand to enjoy when you trade on Binance options? Here are the key benefits that attract most traders:
Stablecoin settlement
As stated earlier, Binance Options are priced and settled in stablecoins. This makes it easy for traders to calculate profit and loss, even during volatile markets.
User-focused experience
The Binance Options trading platform is user-friendly. In fact, it is user-focused in a manner that makes it convenient for traders of all experience levels, including newbies. API connectivity also means traders can enjoy high operational efficiency.
Competitive fees
As one of the biggest crypto platforms, it is not surprising that Binance offers some of the lowest fees on the market.
Low Capital Requirement
You don’t need a lot of money or crypto assets to start trading Binance Options. You only need to pay the required Options Premium, which makes it possible to amplify your trading results significantly with relatively little capital.
Alternative trading opportunities
Binance Options trading creates many opportunities for crypto traders. The products allow you to explore options and take positions not just on price directions but also on volatility trends.
Portfolio Protection
If you are in the crypto game for the long run, Binance Options offer you a great way to hedge your risks. Put Options, specifically, can protect your crypto portfolio against market downturns.
How to Trade Binance Options – Step-by-Step Guide
Here’s a step-to-step guide on how to get started with Binance Options:
Log in to your Binance Account. If you currently don’t have an account it is easy to open a free account and verify your identity
Once you are logged in to your Binance Account, click on [Derivatives] – [Options]
Click [Open Options Account] to create a Binance Options account. Please note that you need to have a verified Binance account before you can trade on Binance Options.
Click [Transfer] to add money to your Options Wallet and confirm after inputting the right amount
Choose between the various [Call] and [Put] options to open a position
You will notice that once you select a Call or Put option, a [Trading Panel] will be open. At this point, you can click on the arrow to explore more market details or on the candlestick symbol to switch trading interfaces.
Select [Order Type], enter [Price] and [Amount] on the appropriate fields and click [Buy]. Congratulations, you have opened a position!
Exclusive Promotions on Binance Options
In their bid to become everyone's favourite trading platform and encourage crypto enthusiasts to explore the opportunities in Options trading, Binance announced exclusive promotions to celebrate the launch of the new Binance Options trading platform.
30% Options Trading Fee Commission for Affiliates
Binance Affiliates could easily be the highest beneficiaries in the ongoing promotions. Since early October 2022, affiliates have been receiving 30% commissions of their eligible referrals' trading fees on Binance Options. In this case, eligible referrals include existing and new referrals via Standard Affiliate Mode. You can refer new people to Binance and Binance Options to start earning or increase your commission earnings.
30% Trading Fee Rebates for All Options Traders
Binance is also rewarding all users who trade on Binance Options from 3rd October to 31st December 2022 with a 30% rebate of their Options trading fees. This implies that in addition to potential profits, you will recoup 30% of all Options trading fees within the specified period.
Note: Binance does not offer trading fee rebates for Daily Options trading. In the same vein, Binance Affiliates will not receive commissions from Daily Options trades.
Wrapping up
Getting started with Binance Options is easy, although it’s important to take time to understand how options trading works. Meanwhile, if you’re already a seasoned options trader, the exclusive commission earnings and trading fee rebates are good reasons to give Binance Options a try.
