The largest exchange Binance has launched options on American stocks. The new product has been officially named Stock Options. The platform has added options on stocks and exchange-traded funds. These instruments are traded on the US stock market. The product has become an important milestone in the development of the large ecosystem. The exchange is expanding access to traditional financial markets. Users operate through the familiar interface of the Binance crypto exchange. Trading is conducted alongside regular digital assets.
Options contracts grant the right to purchase underlying shares. Buying call options locks in a predetermined price. Put options grant the right to sell underlying assets. The sale is possible before the expiration date arrives. The new product provides exclusively for physical settlement of contracts. Users receive or deliver actual underlying shares. Securities are held by Alpaca on behalf of clients. The first phase supports only simple long strategies. Clients can buy call and put options. Writing options and short positions are not available.
The financial risk for buyers is strictly defined in advance. The maximum loss is limited to the size of the premium paid. Clients trade options with highly competitive commissions. The commission amounts to just six cents. No separate special wallet is required to operate. Transactions are paid from standard Binance platform wallets. The platform supports dollars, stablecoins, and the BNB token. The first phase supports only limit trading orders. Trading hours correspond to the schedule of the American options market.
Most options trade from nine-thirty in the morning. Trading closes at four o'clock Eastern Time. Some exchange-traded funds trade until four fifteen. The launch reflects the global strategy of the major crypto exchange Binance. The company is combining cryptocurrencies and traditional financial instruments. The platform is creating a unified infrastructure for trading different assets. Investors gain access to new asset classes.
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This material has been prepared exclusively for informational purposes and does not constitute financial advice or a recommendation.