Yes, you can trade options on Binance US. Options are a type of derivative security, which means they derive their value from an underlying asset.
In the case of options traded on Binance US, the underlying asset is a security listed on our exchange.
Options give the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a certain date. There are two types of options: call options and put options.
Call options give the holder the right to buy an underlying asset at a specified price on or before a certain date. Put options give the holder the right to sell an underlying asset at a specified price on or before a certain date.
Options can be used for a variety of purposes, such as hedging, speculation, and generating income.
The process of trading options on Binance US is similar to trading other types of securities on our platform. After creating an account and passing KYC/AML verification, you will be able to deposit USD or USDC and start trading options.
To trade options on Binance US, you will need to have sufficient funds in your account to cover the cost of the option plus any applicable fees. When buying call or put options, you will pay the option premium upfront.
The option premium is determined by factors such as the underlying asset’s price, strike price, time to expiration, and implied volatility.
If you hold a call option when expiration arrives and the underlying asset’s price is above the strike price, you will exercise your option and receive the underlying asset at the strike price. If the underlying asset’s price is below the strike price at expiration, your option will expire worthless and you will lose your entire option premium.
If you hold a put option when expiration arrives and the underlying asset’s price is below the strike price, you will exercise your option and receive cash equal to the strike price minus the underlying asset’s price. If the underlying asset’s price is above the strike price at expiration, your option will expire worthless and you will lose your entire option premium.