Binance Exchange launches option contracts on Ethereum and XRP
Binance cryptocurrency exchange this morning announced the launch of options on Ethereum and XRP. As well as options for bitcoin, so far they will be available only in the mobile application.
Listing of options for Bitcoin Binance held in mid-April. Contracts for ETH and XRP are available for settlement overtime periods from 10 minutes to 1 day. The maximum contract size for one application is 200 ETH and 200,000 XRP, respectively. The exercise price of the option is the last price of the corresponding contract on the Binance Futures platform.
According to the data of the analytical platform Skew, currently, Deribit remains the largest platform in terms of the volume of active positions on bitcoin options. It is followed by LedgerX, OKEx, and CME.
According to Binance, on April 20, the volume of trading in its Bitcoin options reached $ 295 million, and a day after the launch of a new instrument, it surpassed its closest competitors in this indicator.
As the company noted, the existing options offerings in the cryptocurrency market are characterized by insufficient liquidity, especially for contracts with later exercise dates. Binance solves this problem by reducing the list of available contracts in one day. One of the main remarks on Binance contracts is associated with this feature, which is difficult to use for hedging because of their focus on short-term trading.