Malta-based cryptocurrency exchange Binance on April 3, 2020, hinted that it could soon add support for options trading on the platform.
Binance Gearing to Introduce Options Trading?
In a rather cryptic tweet on April 3, Maltese cryptocurrency exchange Binance hinted that it would soon be ready to release options contracts trading for its users. The exchange tweeted that currently, it is in the testing phase with regard to options trading on the platform.
TestFlight leaks 👀
Notice anything new? pic.twitter.com/dH7AeHzwDs
— Binance (@binance) April 3, 2020
For the uninitiated, options contracts are complex financial instruments compared to traditional stocks or even digital tokens. Essentially, a financial option is a derivate instrument whose value depends on the volatility of the underlying asset. Presumably, in the case of Binance, these underlying assets would be crypto-assets including the likes of Bitcoin (BTC), Ether (ETH), and XRP, among others.
Further, options are also an attractive financial instrument in that they can help investors make money speculating the price of the underlying asset at a particular time in the future and thus hedge their risks.
For Binance, the introduction of options trading could be a part of its long-term business expansion strategy that involves offering different financial instruments and products to users to trade efficiently. Options trading on the platform would also help boost the liquidity of digital assets listed on the exchange.
Binance Upping the Ante During Financial Meltdown
The COVID-19 pandemic has scaffolded the world and brought the global economy to an indefinite and uncertain standstill. While measures are being undertaken the world over to mitigate the economic and financial impact of the virus, a slew of businesses and industries across the world are cutting down their operations dramatically.
However, businesses in the Bitcoin space – especially Binance – seem to be capitalizing on the overall pessimistic business sentiment that has gripped the world.
In the recent past, Binance has introduced several market products and services to expand its dominance in the nascent digital currency industry.
Crypto.news reported on March 26, 2020, how Binance exchange had launched Binance Card to foster cryptocurrency adoption for daily purchases among the mainstream.
Most recently, reports alsostating that Binance is set to enter the already competitive Bitcoin (BTC) mining industry.