Binance, the blockchain ecosystem and cryptocurrency exchange, said it will extend access to Bitcoin options to all users and offer a 20% discount on new contracts.
The company is seeking to cash in on growing consumer demand for more complex trading strategies that involve purchasing the right to buy or sell tokens at a specific price for a certain period of time. These options, along with futures contracts, are widely used by traders as a hedge against price volatility and can help market participants to manage risk.
Liquidity & hedging tools
“Users around the world utilize Binance’s derivatives products for liquidity and hedging at highly-competitive prices and our bitcoin options products will meet the growing retail demand for more and better trading tools,” said Jeff Li, VP of Product at Binance, in an e-mailed press release. “As with traditional markets, accelerating crypto adoption will increase demand for more sophisticated liquidity tools and we are committed to building a fuller suite of derivative products to support our users.”
Total Bitcoin options trading volume grew to $138.76 billion in July from $4.11 billion five years ago, according to Binance. As an incentive to use the new options writing capability, all Binance users can request a 20% discount on both Taker and Maker trading fees on all newly listed options contracts on Binance.
20% fee discount
Binance also said it will grant a reduction of 20% on fees for new options contracts linked to Ether (ETH), BNB and Solana (SOL).
The company said it implements robust risk management controls and requires option writers to post margin to collateralize their obligations to fulfil delivery. Users must pass a mandatory suitability assessment in order to access Binance Options products.
