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Binance Introduces 'T+3' Daily BNB/USDT Option Contracts

Aug 29, 2023 at 01:32 pm

Binance, a prominent entity in the domain of cryptocurrency exchanges, is gearing up to enhance its range of offerings via its trading segment, Binance Options. This novel development centers on the introduction of pioneering "T+3" daily call and put contracts intrinsically linked to BNB, a cryptocurrency closely intertwined with the exchange itself.

Commencing from the upcoming Wednesday, Binance Options is slated to initiate the daily listing of T+3 BNB/USDT options, with the commencement scheduled at 08:00 UTC. Notably, it's imperative to emphasize that the initiation of new listings will not align with the expiration of contracts featuring extended durations, a fact explicitly outlined within the official blog post released by the exchange.

The term "T+3" symbolizes the stipulation for settling securities trades within a three-day timeframe subsequent to the initial trade date. Essentially, users will be endowed with the capability to participate in trading T+3 daily options a couple of days prior to the expiry date. Consequently, these options will encompass an initial trading duration spanning three days starting from their unveiling. This innovative introduction endeavors to furnish traders with heightened adaptability, effectively augmenting the spectrum of products already offered by the exchange, including BNB options with prolonged durations and T+2 daily BNB options.

Aligned with the specifications of other BNB options, the T+3 daily options will encompass each call and put contract that symbolizes 1 BNB. The contracts will expire daily at 08:00 UTC. It's of paramount importance to emphasize that the execution of these contracts can only be undertaken upon attaining their expiration date, and the settlements will transpire in USDT. Options function as derivative contracts, endowing the buyer with the prerogative to either buy or sell the underlying asset at a predetermined price on or before a specified date. A call option confers the right to purchase, whereas a put option grants the right to sell.

The rollout of T+3 daily options arrives amid a backdrop of escalated volatility within the BNB market. The cryptocurrency encountered a substantial plummet to a 14-month nadir of $203 during the preceding week, catalyzed by a report emanating from the Wall Street Journal that intimated Binance's role in assisting Russian users to evade international sanctions. This report further compounded the mounting regulatory apprehensions enveloping the exchange.

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