Binance gearing to enter trading options?
In a fairly encrypted tweet on April 3, the Maltese cryptocurrency exchange Binance hinted that it would soon be ready to conclude trade option contracts for its users. The exchange has tweeted that it is currently in the test phase for options trading on the platform.
For the uninitiated, option contracts are complex financial instruments compared to traditional stocks or even digital tokens. A financial option is essentially a derivative instrument, the value of which depends on the volatility of the underlying. Binance’s case is believed to be cryptographic assets, including Bitcoin (BTC), Ether (ETH), and XRP.
In addition, options are also an attractive financial tool, as they can help investors make money by speculating later on the price of the underlying and covering their risks.
For Binance, the introduction of options trading could be part of its long-term strategy to expand trading, which is to offer users various financial instruments and products for effective trading. Trading options on the platform would also help increase the liquidity of the digital assets listed on the exchange.
Binance increases the stake during the financial breakdown
The COVID-19 pandemic has wiped out the world and led the world economy to undetermined and uncertain stagnation. As measures are taken worldwide to reduce the economic and financial impact of the virus, many companies and industries around the world are significantly reducing their business.
However, cryptocurrency companies, especially Binance, appear to be taking advantage of the general pessimistic sentiment that has swept the world.