Binance Options offers a lower entry barrier and provides flexibility to option traders. You can take advantage of the price movement within different time frames and enjoy unlimited profit with limited risks. Unlike traditional options products, Binance Options are intuitively designed to enhance your trading experience.
Binance Options is an American-style option, you can execute the contract any time before the expiration date. Our product offers a shorter time frame than traditional options, ranging from 5 mins to 1 day.
The traditional options products tend to have less liquidity, especially for options that are far out-of-the-money. To avoid this, Binance Options only has one strike price, which is equivalent to the contract price on Binance Futures.
You can only be a buyer of Binance Options as Binance is the sole issuer (option seller). Therefore, there is no order book on Binance Options. An options contract will remain valid until the holder exercises the option any time before or upon the expiration date. The maximum loss for an options contract is the premium you paid. The breakeven point is the Strike Price +/- the Premium (depending on whether it is a call or a put contract).
Binance Options Contract Specifications
Binance Options Trading Interface
1. The underlying asset
2. Current local time
3. Balance: The available balance that can be used on 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 5 minutes, 10 minutes, 30 minutes, 1 hour, 4 hours, 8 hours, 12 house, or 1 day for your contracts
7. The underlying asset chart
8. Positions (of unexercised options): “C” stands for call option; “P” stands for put option
9. Orders: You can only be a buyer on Binance Options
10. Your positions
11. History of your exercised/settled options
12. Description of the purchased options
13. The buying 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 there 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)
- 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
- 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).
Price
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 'normal' market (less volatile market), will always be nearly exactly the same, but for large orders, or orders executed during a volatile market, the price may somewhat deviate based on the actual order execution.
Risk Warning
There is no guarantee that your options purchase will execute at a profit after the premium has been deducted. Not all options trading are profitable. Please enter the market at your own discretion.