Binance, one of the leading cryptocurrency exchanges, has announced the launch of its trading division Binance Options, offering T+3 daily call and put contracts tied to BNB, a cryptocurrency closely linked to the exchange. Starting Wednesday, Binance Options will list the T+3 BNB/USDT options every day at 08:00 UTC.
Options are derivative contracts that give the purchaser the right, but not the obligation, to buy or sell the underlying asset at a predetermined price on or before a specific date. A call option gives the right to buy, while a put option offers the right to sell. The T+3 daily options will have similar specifications as other BNB options, with each call and put contract representing 1 BNB and expiring every day at 08:00 UTC. The contracts can be exercised only on expiry and will be settled in USDT.
T+3 refers to the obligation to settle securities trades by the third day following the trade date, Binance said in the official blog. In other words, users can trade the T+3 daily options two days before the expiry day. The options, therefore, will have an initial lifetime of three trading days at the time of introduction.
The new product will offer greater flexibility to traders and expand the exchange’s existing product suite that includes longer duration BNB options and the T+2 daily BNB options. The launch of T+3 daily options comes amid heightened volatility in BNB.