BTC Options Expiry: Which Price Window Determines Settlement?
As expiry approaches, looking only at the last BTC spot trade could lead you to misread the option settlement outcome.
Article 128 of Binance Crypto Options’ Clearing Procedures states that the settlement price is the arithmetic average of the price index over the 30 minutes before expiry. There are two conditions here: it uses the index, not an arbitrary spot trade, and it uses a time window, not a single price at the moment of expiry.
So even if the last spot price happens to cross the strike price, that alone does not mean a call option will have a positive settlement amount. The relevant factor is the relationship between the official settlement price and the strike price. Using an intraday option mark price as a substitute for the settlement price can also confuse the two measures.
To check your records, first confirm the expiry date and strike price from the contract name. Then check the contract’s actual expiry time and the corresponding 30-minute window, and finally verify the platform’s settlement record. Don’t copy over times from other exchanges, stock options, or outdated examples.
These crypto options are cash-settled under the rules. Receiving a positive settlement amount does not mean you made a net profit; the premium paid by the buyer and any related fees must also be included. This article does not show personal positions or returns, and it does not recommend trading. Refer to the official page for applicable regions, permissions, and specific contract terms.
Sources: Binance Options Specifications, Articles 126–130 of the Clearing Procedures, and the FAQ. Platform creator rewards or commissions may be involved; eligibility and earnings have not been confirmed.
$BTC #加密期权 #结算机制 #Risk Check
As expiry approaches, looking only at the last BTC spot trade could lead you to misread the option settlement outcome.
Article 128 of Binance Crypto Options’ Clearing Procedures states that the settlement price is the arithmetic average of the price index over the 30 minutes before expiry. There are two conditions here: it uses the index, not an arbitrary spot trade, and it uses a time window, not a single price at the moment of expiry.
So even if the last spot price happens to cross the strike price, that alone does not mean a call option will have a positive settlement amount. The relevant factor is the relationship between the official settlement price and the strike price. Using an intraday option mark price as a substitute for the settlement price can also confuse the two measures.
To check your records, first confirm the expiry date and strike price from the contract name. Then check the contract’s actual expiry time and the corresponding 30-minute window, and finally verify the platform’s settlement record. Don’t copy over times from other exchanges, stock options, or outdated examples.
These crypto options are cash-settled under the rules. Receiving a positive settlement amount does not mean you made a net profit; the premium paid by the buyer and any related fees must also be included. This article does not show personal positions or returns, and it does not recommend trading. Refer to the official page for applicable regions, permissions, and specific contract terms.
Sources: Binance Options Specifications, Articles 126–130 of the Clearing Procedures, and the FAQ. Platform creator rewards or commissions may be involved; eligibility and earnings have not been confirmed.
$BTC #加密期权 #结算机制 #Risk Check
