Leading cryptocurrency exchange Binance said its trading arm, Binance Options, will offer “T+3” daily call options and put contracts tied to BNB, a cryptocurrency closely tied to the exchange.
Starting Wednesday, Binance Options will list T+3 BNB/USDT options at 08:00 UTC every day. The exchange said in its official blog that there will be no new listings on the expiration date of the longer-term contracts.
T+3 means that the delivery obligation of securities transactions is carried out on the third day after the trading day. In other words, users can trade T+3 date options two days before the expiration date. Therefore, options have an initial expiry period of three trading days at launch.
The new product will provide traders with greater flexibility and expand the exchange’s existing product suite, including longer-term BNB options and T+2 daily BNB options.
T+3 daily options will have similar specifications to other BNB options, with each call and put contract representing 1 BNB and expiring on the day at 08:00 UTC. The contract can only be exercised when it expires and will be settled in USDT.
Options are derivative contracts that give the buyer the right, but not the obligation, to buy or sell an underlying asset at a predetermined price on or before a specific date. A call option gives the right to buy, while a put option gives the right to sell.
The launch of T+3 daily options comes at a time of heightened volatility in BNB. The cryptocurrency fell to a 14-month low of $203 last week after the Wall Street Journal reported that Binance helped Russian users circumvent international sanctions by moving funds abroad. The report adds to growing regulatory concerns about the exchange.
