Binance announces introduction of European-style XRP/USDT Options contracts

Binance has announced the launch of XRP/USDT Options on its Binance Options RFQ platform, set to go live on Monday, March 11. This move is aimed at expanding the trading options available to users and improving their overall trading experience. The Binance Options RFQ, short for Request for Quote, enables users to request quotes for options trades directly from the Binance OTC Trading Desk, offering institutional-grade liquidity for executing large-sized trades without fees and at competitive rates.

About the XRP/USDT Options contract

The new XRP/USDT Options will be European-style contracts, which differ from American-style options in that they can only be exercised at the time of expiry. However, they can be traded at the current market price up until that point. This feature is designed to provide traders with more flexibility in their trading strategies.

Binance has highlighted the risks associated with options trading, emphasizing that while there is potential for significant gains, there is also a substantial risk of loss. The maximum loss for an options buyer is limited to the premium paid for the option. Traders engaging in options trading on Binance will be required to agree to the terms laid out in the Binance Options Service Agreement.

Despite the announcement of the new XRP/USDT Options, there has been no significant impact on the price of XRP. At the time of writing, XRP is trading at $0.6207, marking a 0.04% decline. This follows a slight retracement in the price of Bitcoin, which currently trades at $68,177, according to Coinmarketcap.