bStocks why trading 24/7 does not make the underlying market 24/7
bStocks are tokenized securities that provide economic exposure to selected U.S. stocks. Each bStock must be backed by its corresponding underlying security, but there’s an important detail: the holder of a bStock does not become a direct shareholder of the company and does not receive typical shareholder rights.
On Binance Spot, bStocks are available for trading 24/7 to users who meet the requirements in the permitted jurisdictions. However, the underlying U.S. stock continues to trade on a traditional market schedule. When the underlying exchange is closed, the bStock price is determined by supply and demand on Binance and may diverge from the last traded price of the stock.
Before placing a trade, you should check four things:
- whether the product is available in your jurisdiction;
- whether there is a premium or discount to the underlying stock;
- whether liquidity is sufficient and the spread is acceptable;
- how dividends, splits, fees, taxes, and potential withdrawal to BNB Smart Chain will be handled.
24/7 access is convenience, not an elimination of market, liquidity, and regulatory risk.
#bStocks #BinanceSquare #RWA #RiskManagement
bStocks are tokenized securities that provide economic exposure to selected U.S. stocks. Each bStock must be backed by its corresponding underlying security, but there’s an important detail: the holder of a bStock does not become a direct shareholder of the company and does not receive typical shareholder rights.
On Binance Spot, bStocks are available for trading 24/7 to users who meet the requirements in the permitted jurisdictions. However, the underlying U.S. stock continues to trade on a traditional market schedule. When the underlying exchange is closed, the bStock price is determined by supply and demand on Binance and may diverge from the last traded price of the stock.
Before placing a trade, you should check four things:
- whether the product is available in your jurisdiction;
- whether there is a premium or discount to the underlying stock;
- whether liquidity is sufficient and the spread is acceptable;
- how dividends, splits, fees, taxes, and potential withdrawal to BNB Smart Chain will be handled.
24/7 access is convenience, not an elimination of market, liquidity, and regulatory risk.
#bStocks #BinanceSquare #RWA #RiskManagement