Afterwards, learning this information will put you one step ahead of your competitors in the Options market. Especially, you must be knowledgeable in this market. Otherwise, you could lose all your balance. Therefore, if you are going to trade on the Options side, you also need to increase your knowledge.

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What are Binance Options?

Options are financial instruments that give people the right to buy or sell an asset at a certain price and date. However, they do not make this transaction mandatory. There are two types of options: Call and Put Options.

• Call Options: This gives you the right to purchase an asset at a certain price on a certain date, but it does not oblige you.
• Put Options: This gives you the right to sell an asset at a certain price on a certain date, but it does not oblige you.

Investors enter Call Options when they expect the price of the asset to increase and Put Options when they expect the price to decrease. There are also some term that you need to know. These terms as below:

• Option Symbol- This includes some informations such as Asset, Expiration Date, Usage Price, Option Type.

For instance, symbol ETH-220908-1576-C means that Ethereum will be bought at certain price ($1,576) at a certain date. Also, symbol shows that this transaction date will end September 8, 2022.

• Usage Price- It is price that assets can be bought and sold in advance. This indicates buying and selling price while buying and selling asset.
• Consensus Price- It is an average of Spot Price Index in a certain time interval. For instance, consensus price of ETH-220908-1576-C is that average price ETH spot index in a certain date in a certain time interval.
• Expiration Date- It shows that due date which a option will end.
• Option Bonus- It is an current price of a option. It is an amount that is paid by investor to gain right of usage. This option can change depending on asset price, expiration date etc.

Options Limited Order Types

Binance offers two types of orders to Options investors:

1. Limit Order: This is a basic type of order aiming to buy or sell at a certain price. However, it does not execute without matching the relevant price in the order book.
2. Best Bid Offer(BBO): BBO is another type of Limit Orders. It tries to automatically buy or sell based on the current Best Bid price, but it may not succeed.

As you can see, there are risks here as in every financial market. So, what is the advantages of the option trade? However, disadvantages of the marketplace is essential. This disadvantage is associated with Option Bonus paid. Now, the advantages of this trade:

1. Option Trade provides a security against the risk in the market. 2. It offers more flexibility while managing of risk in portfolio. 3. Various trade strategies can be created with different risk/reward profiles. 4. It offers making profit opportunity in different market conditions. 5. Investors can carry the same risk without having a Futures or Spot position and requires less capital; 6. Option trading offers investors a way to provide more flexibility and risk management in financial markets.

How to Use Binance Options?

The explanation will be made in two different versions. One will be through Binance’s official website. Another explanation will be made through the mobile application. But before all these transitions, you need a Binance account. You can register for the Binance exchange using our registration link, which offers a lifetime 20% commission discount exclusively for you, or the followers of Coin Engineer.

Tutorial of Binance Options on website

First of all, after registration website you need not choose Options from Futures button on the dashboard.

After that, you will go to the page of general Market view. Here, you can see all options. Besides, there is Orderbook to use in option trade time.

Then, you need to have an amount of balance. For that reason, you can add USDT or other cryptocurrencies to your wallet. You need to choose ”Wallet” and then ”Options” for this.

Now, you have balance. Thus, you can get a trade on any Option. For doing this, you may use ”ETHUSDT” button. After that, you can go on your operations while using ”Call” button.

In the sequel, you can use the button shown in the figure below to order BBO or Limit Order.

Lastly, you may enter the price and amount to blank below.

Same as Futures you can see all last transactions at the bottom of the transaction panel.

Tutorial of Binance Options on mobile application

After opening Binance application, you need to activate Options from Futures on the dashboard. Thus, you can start option trade on the page opened.

However, you must skip a short procedure presented by the exchange before starting Option trade. Here, you can pass the all operations fastly while using the ”Start Now” button.

Another operation that you need to make is to increase your Option balance. For this, you will choose Wallets and then Options. You could transfer your assets between wallets by filling with certain amounts in the blank.

Now, you can enter Futures-Options and think about buy/sell positions. It is very easy and almost same as Binance Futures.

Then, new page opened will offers users a worker field to use Option trade. Thus, users can enter the amounts and the prices here. After that, you can open short or long positions.

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As you can see, using Binance Options, whether through the website or mobile app, is a fairly straightforward process as long as you understand the basics of options trading. Always remember that trading financial instruments involves risks and you should only trade with what you can afford to lose.

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The post What are Binance Options? How to Use? appeared first on Coin Engineer.