CZ confirms option trading
For quite some time, rumors had been circulating about a Binance option trade for BTC through the crypto space. These have now been officially confirmed. With the inclusion of the special derivatives, the renowned exchange is attracting attention among users. We take a look at the current events.
What is option trading?
Options trading is a lucrative but risky field. These are instruments that offer a choice. The buyer of an option has the right to buy (call option) or sell (put option) a so-called underlying asset (stock, crypto currency or other investment products) at a certain price within a specified time. The expiration date by which the right can be exercised is always determined in advance. In contrast to futures, investors in options can exercise their right of choice and not exercise a derivative. In the “long option”, the investor is the seller of an option, whereas in the “short option”, the investor is the buyer of an option.
Comment CZ (CEO of Binance)
Changpeng Zhao. for his part leading CEO of Binance, comments on the new news as follows: “The option contract is a highly anticipated product that will allow traders and miners to effectively hedge their positions and speculators to benefit from market movements. There are other features and products in the pipeline.” Whether the new products include options for Altcoins remains open for the time being.
Zhao about futures
CZ also draws a positive balance with regard to futures: “I am impressed by the speed with which our community has adopted Binance Futures. It has grown rapidly over the last six months and has become a leading crypto derivatives platform. I believe this success is due to our continuous introduction of new features, listening to our users, the lowest fees in the market, a stable and fast platform, the hard work of the team, good luck and most importantly, the support of our users”.
Bitcoin in front of 7000 USD mark
Bitcoin is able to recover from the setbacks of the past few days on Tuesday and is now trading at USD 6917. Thus, the important trend line at 6800 USD now forms the next support area. From a bullish perspective, an attack on the $7,000 level after breaking through the $7,000 mark would be quite realistic.
What are the Alts doing?
Ethereum (ETH) is trading at around USD 160 after a daily gain of around 3%. In the top 10, only the Binance Coin (NBB) was able to record a higher increase (approx. 7 %). Thanks to the positive news of the past few days, NBB is gaining ground on position 7 in the crypto charts. Meanwhile, the Bitcoin Dominance Index is at 64.2 %. All old coins share a market share of “only” 35.8%.