#JELLYJELLYFuturesAlert Binance Options Trading: A Complete Guide
Binance Options is a trading feature that allows users to speculate on the future price of cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB) by buying or selling call and put options. It provides flexibility with various expiry times and leverage options.
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1. What Are Options?
Options are derivative contracts that give traders the right (but not the obligation) to buy or sell an asset at a predetermined price before the contract expires.
Call Option → Profits when the asset price goes up.
Put Option → Profits when the asset price goes down.
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2. Key Features of Binance Options
Short-Term Expiry: Expirations from 5 minutes to 1 day (for BTC/ETH/BNB).
European-Style Options: Can only be exercised at expiration.
USDT-Settled: Profits and losses are settled in USDT.
No Margin Requirement: Loss is limited to the premium paid (for buyers).
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3. Trading Example
Imagine BTC is trading at $82,000 and you expect a price increase. You buy a BTC Call Option with:
Strike Price: $83,000
Premium Paid: $50 USDT
Expiration: 1 hour
Possible Outcomes:
✅ If BTC rises to $83,500, you make a profit since the option has value.
❌ If BTC stays below $83,000, you lose the premium ($50 USDT).
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4. Benefits & Risks
✅ Advantages:
✔ Limited Losses – You only lose the premium paid.
✔ Leverage – Small capital can control larger positions.
✔ Hedging – Protects against price drops (for holders).
❌ Risks:
✘ Time Decay – Options lose value as expiry nears.
✘ Premium Cost – If the price doesn’t move much, the option expires worthless.
✘ No Early Exercise – Binance offers European-style options (can’t be exercised before expiry).
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5. How to Trade Binance Options
1. Go to Binance Futures → Options.
2. Select Asset (BTC, ETH, BNB).
3. Choose Expiry (5 min – 1 day).
4. Pick Call or Put Option.
5. Set Strike Price & Pay Premium.
6. Monitor and Close Before Expiry.
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6. Strategies for Profitable Trading
