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Binance launches options trading for Ethereum and Ripple

Cryptocurrency

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Just over a month after Binance launched Bitcoin Options trading, the company today announced the listing of Ethereum (ETH) and XRP contracts on its derivatives platform.

Options are investment contracts that provide traders with the right – but not the obligation – to buy or sell an asset for a specified price during a specified period.

Ethereum and XRP options are now available from Binance. Users who access by app must update their apps to access them.

"The options contract is a highly anticipated product, allowing traders and miners to effectively buy insurance in their positions and for speculators to also take advantage of market movements," said Changpeng Zhao, CEO of Binance, in a blog post.

Option contracts are risky, warned Binance on its blog. “There is no guarantee that your option purchase will be profitable. Most option purchases will not be profitable, but a minority will be very profitable, ”he wrote.

Good advice: Bakkt's Bitcoin options, for example, reached zero when turnover plummeted in January.

* Translated and republished with authorization from Decrypt.co


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This source of this article is portaldobitcoin.com.

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