- Binance has launched options on stocks and ETFs traded on the U.S. market.
- The product initially supports only long call and put strategies placed through limit orders.
- Contracts are physically settled, with underlying shares held by Alpaca on behalf of Binance users.
Binance has announced the launch of Stock Options, allowing users to buy options on U.S.-traded stocks and exchange-traded funds through its interface, according to a press release provided to Incrypted. The company described the product as the next stage in its expansion from a cryptocurrency exchange into an ecosystem providing access to both crypto and traditional financial markets.
Stock Options adds U.S. equity options to an interface that also offers crypto assets, stocks, bStocks and TradFi Perps.
Trading and settlement
Stock Options are contracts tied to stocks and ETFs traded in the United States. A call gives its buyer the right, but not the obligation, to buy the underlying shares at a predetermined strike price. A put gives its buyer the right, but not the obligation, to sell the underlying shares at the strike price before the contract expires.
The contracts use physical settlement. When an option is exercised, users receive or deliver the underlying shares, which Alpaca holds on behalf of Binance users.
At the initial stage, Binance supports only long strategies involving the purchase of call and put options. Users cannot write options or take short exposure. A buyer’s maximum loss is limited to the premium paid.
Binance said users can trade the options with a fee of $0.06. Initially, the product supports only limit orders.
Payments and trading hours
Users do not need a separate wallet to trade Stock Options. Where supported under the product terms, payments can be made from a Funding Wallet, Spot Wallet or Flexible Earn. Available currencies include USDC, USDT, USD1, U, BNB and USD.
Trading hours follow the U.S. options market schedule. Most U.S. equity options trade from 9:30 a.m. to 4 p.m. Eastern Time, while some ETF and exchange-traded note options may trade until 4:15 p.m. Eastern Time.
Binance said the launch reflects its strategy of combining crypto and traditional financial instruments on one platform. The company positions Stock Options as part of broader infrastructure for multi-asset trading rather than as a standalone listing.
Source: Incrypted
