What Are Binance Options
Binance Options are American-style options that allow you to exercise the options contract any time before the expiry date. Binance Options are cash-settled, and therefore, the physical delivery of the underlying asset is not required.
In contrast to traditional options, Binance Options offers a shorter time frame ranging from 5 mins to 1-day expirations. Binance Options comes with only one strike price, which is equivalent to the contract price on Binance Futures. In other words, Binance Options are always "at-the-money".
You can only be a buyer of Binance Options as Binance is the sole issuer (option seller). Therefore, there is no order book for Binance Options. As an option buyer, the maximum loss for an options contract is the premium you paid. In this case, your breakeven point is the Strike Price +/- the Premium (depending on whether it is a call or a put contract).
Binance Options Contract Specifications
|BTCUSDT Binance Futures Contract||ETHUSDT Binance Futures Contract||XRPUSDT Binance Futures Contract||BNBUSDT Binance Futures Contract||LINKUSDT Binance Futures Contract||LTCUSDT Binance Futures Contract|
Minimum Contract Size
|0.001 BTC||0.001 ETH||0.1 XRP||0.01 BNB||0.01 LINK||0.001 LTC|
Maximum Contract Size
|20 BTC||200 ETH||200,000 XRP||2,000 BNB||2,000 LINK||20 LTC|
|Last price of BTCUSDT Binance Futures Contract||Last price of ETHUSDT Binance Futures Contract||Last price of XRPUSDT Binance Futures Contract||Last price of BNBUSDT Binance Futures Contract||Last price of LINKUSDT Binance Futures Contract||Last price of LTCUSDT Binance Futures Contract|
Binance Options Trading Interface
1. The underlying asset
2. Local time
3. Balance: The funds that can be used to purchase Binance Options is the available balance on Binance Futures
4. Transfer: Click to transfer funds from your Spot Wallet to your Futures Wallet
5. Binance Options user guide
6. Expiration date: You can choose contract expirations from 5 minutes, 10 minutes, 30 minutes, 1 hour, 4 hours, 8 hours, 12 hours, to 1 day
7. The underlying asset's price chart
8. Positions (of unexercised options): "C" stands for call option, "P” stands for put option
9. Orders: You can only be a buyer of Binance Options
10. Your positions
11. History of your exercised/settled options
12. Description of the purchased options
13. Purchase time of the option
14. Purchased quantity (in contract unit)
15. Strike price: The underlying price when the order is placed. The strike price displayed might be different from the actual last price of the underlying asset when the market is highly volatile
16. Premium: The total price you paid to purchase the option
17. Breakeven price
- Breakeven Price of Call Options = Strike Price + (Premium/Quantity)
- Breakeven Price of Put Options = Strike Price - (Premium/Quantity)
18. Time to Expiration: Countdown before the expiration date
19. Unrealized PNL
- Unrealized PNL of Call Options = Max [ ( Underlying Price- Strike Price ) * Quantity, 0 ]
- Unrealized PNL of Put Options = Max [ ( Strike Price - Underlying Price ) * Quantity, 0 ]
- The maximum loss is the premium paid
20. Settle: Click to exercise the options before or upon the expiration date
21. Target price: Click to set target price by entering the distance from the Strike price
22. Extend: Click to extend the expiration date to increase the potential profit opportunities
Important Disclaimers Regarding Options Trading
Premium / Profit
The premium is first deducted from your Binance Futures Wallet balance. After that, only profits will be calculated. In rare cases, deducting the premium may cause your futures positions to enter liquidation. Therefore, please ensure that you have adequate free margin in your Futures Wallet balance before placing an options order. Note that to make a net profit in options trading, the profit must be larger than the premium. Profit will be between 0 to infinity, and the premium is a fixed value you paid before the trade. Thus options have fixed downside costs that are paid upfront and unlimited upside profits. The net profit for your options trade is (profit - premium).
All trades are executed at market price. There is no guarantee that the price you see on the screen will be the exact price you execute, although it is generally very close. The price of small orders, or orders executed during a 'normal' market (less volatile market), will always be nearly the same, but for large orders, or orders executed during a volatile market, the price may deviate based on the actual order execution.
There is no guarantee that your options purchase will execute at a profit after deducting the premium. Not all options trading are profitable. Please enter the market at your own discretion.