Crypto exchange giant Binance announced on Monday the addition of Ethereum and XRP options trading facility.
This addition came only a month after the exchange jumped into options trading with Bitcoin contracts. The platform now supports options trading with three digital currencies.
— Binance (@binance) May 25, 2020
Options are a kind of derivatives that gives the contract holder the right to buy the underlying asset at the mature price, but without any obligation, meaning if the price went the other way, the contract holder can exit by paying a small fee.
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Binance also warned against the risks associated with options trading.
“There is no guarantee that your options purchase will execute at a profit after the premium has been deducted,” the exchange noted. “Most options purchases will not be profitable, but a minority will be very profitable. Please use at your own discretion.”
The global expansion of Binance
Binance was established as a spot crypto trading exchange, but the company started to expand into derivatives trading last year. Its futures platform now sees more daily trading volume than BitMEX, the previous market leader.
The exchange also recently introduced an isolated margin for its margin trading with 11 pairs.
Binance is also expanding its business aggressively in global markets. It has added many fiat currencies over the past few months to tap the local markets, including Europe, Asia, and Africa.
Earlier this month, Binance invested an undisclosed amount in Tokocrypto, a regulated cryptocurrency exchange in Indonesia. It also acquired Coinmarketcap.com for a record $400 million, but the deal attracted many criticisms.