Trading cryptocurrency options has become an increasingly popular way for investors to manage risk, speculate on price movements, and diversify their portfolios. Binance, one of the world’s leading crypto exchanges, offers a robust options trading platform that allows users to trade American-style options with flexible expiry times and a user-friendly interface.
This guide will walk you through everything you need to know about Binance Options, from understanding the basics of options contracts to executing your first trade—whether on desktop or mobile. We’ll also cover key terminology, risk management tips, and practical use cases.
What Are Options Contracts?
Options are derivative financial instruments that give traders the right—but not the obligation—to buy or sell an underlying asset at a predetermined price, known as the strike price, within a specific timeframe.
Unlike futures contracts, which require settlement upon expiry, options provide flexibility. You can choose to exercise the contract if it's profitable or let it expire worthless, only losing the initial premium paid.
Binance offers two primary types of options:
- Call Options: Profit when the price of the underlying asset rises above the strike price before expiry.
- Put Options: Profit when the price falls below the strike price before expiry.
Binance supports American-style options, meaning you can exercise your option at any time before expiration. This is different from European-style options, which can only be exercised on the expiry date.
👉 Discover how options can boost your trading strategy today.
Why Trade Cryptocurrency Options?
While options are often associated with speculation, their most powerful application lies in risk management and hedging.
Hedging with Options
Crypto miners, long-term holders (often called "HODLers"), and institutional investors use put options to hedge against potential price drops. For example:
A miner holding 10 BTC might purchase put options as insurance. If Bitcoin’s price crashes, the gains from the put option can offset losses in their holdings.
This makes options a valuable tool for portfolio protection in volatile markets.
Speculation and Leverage
Options also allow traders to gain leveraged exposure to price movements without owning the underlying asset. Since only a small premium is required upfront, traders can control larger positions with less capital—amplifying both potential profits and risks.
Key Concepts in Options Trading
Before placing your first trade, familiarize yourself with these essential terms:
✅ Premium
The cost of buying an options contract. This amount is deducted from your Futures Wallet and is non-refundable if the option expires out-of-the-money.
✅ Expiry Date
The time window during which the option is valid. Binance offers short-term expiries:
- 10 minutes
- 30 minutes
- 1 hour
- 8 hours
- 1 day
Shorter durations suit quick market predictions; longer ones allow more time for price movement.
✅ Strike Price
The price at which you agree to buy (call) or sell (put) the underlying asset.
✅ Settlement Price
Also known as the close price, this is the market price at the time of exercising the option. Profit or loss depends on the difference between the strike and settlement prices.
✅ Underlying Asset
The cryptocurrency being traded—commonly BTC, ETH, or other major coins quoted against USDT.
How to Trade Binance Options on Desktop
Follow these steps to start trading on Binance’s web platform:
Step 1: Log In or Register
Visit Binance.com and log in. If you’re new, complete registration and identity verification.
Step 2: Navigate to Options
Click Derivatives → Options in the top menu.
Step 3: Register for Options Trading
If this is your first time, click Register Now to activate your options account. This links directly to your Futures Wallet.
Step 4: Transfer Funds
Click Transfer to move funds from your Spot Wallet to your Futures Wallet. Only USDT is accepted for premium payments.
Step 5: Choose Your Option
Select between Call (bullish) or Put (bearish) based on your market outlook. Review available strike prices and expiry times.
Step 6: Open the Trading Panel
After selecting an option, the trading interface appears. You can view charts (including candlestick patterns), recent trades, and depth data.
Step 7: Place Your Order
Set your:
- Order Type (Limit or Market)
- Price
- Amount (in underlying asset)
Then click Buy to confirm.
Step 8: Manage Your Position
You can:
- Hold until expiry
- Manually close by clicking Sell in the trading panel
- Close directly under the Positions tab
There is no order book on Binance Options—your trade is executed against the exchange’s liquidity pool.
How to Trade Binance Options on Mobile
The Binance mobile app provides full functionality for options trading on the go.
Step 1: Download & Log In
Install the Binance app (iOS or Android), then log in or create an account.
Step 2: Activate Futures Account
Since options are linked to your Futures Wallet, ensure your futures account is active. If not, follow the prompts to enable it.
Step 3: Access Options Tab
Go to the Trade tab and select Options at the top of the screen.
Step 4: Transfer Funds
Tap the transfer icon (top-right) to move USDT from your Spot Wallet to your Futures Wallet.
Step 5: Select Expiry & Type
Choose your preferred expiry (e.g., 1-hour) and decide between Buy Call or Buy Put.
For example:
You buy a 1-hour call option for 0.1 BTC at a strike price of $70,697.50. The premium is $2.18 USDT. To break even, BTC must rise above $70,915.80 within the hour.
Confirm by tapping Buy Call → Confirm.
Step 6: Monitor & Close
Under the Positions tab:
- View remaining time
- Track unrealized PnL
- Click Settle to exercise early
Historical trades are available under the History tab.
👉 Start practicing smart risk management with advanced trading tools.
Frequently Asked Questions (FAQ)
Q: Are Binance Options suitable for beginners?
A: While accessible, options involve complex mechanics and higher risk. Beginners should start with small amounts and thoroughly understand payoff structures before scaling up.
Q: Can I lose more than my initial investment?
A: No. The maximum loss is limited to the premium paid. This makes options safer than futures in terms of downside risk.
Q: Is there an order book for Binance Options?
A: No. Binance uses a market-maker model where all trades are settled against internal liquidity, ensuring fast execution without slippage.
Q: How are profits calculated?
A: For calls: (Settlement Price - Strike Price) × Quantity - Premium
For puts: (Strike Price - Settlement Price) × Quantity - Premium
Q: Can I exercise my option before expiry?
A: Yes. Binance offers American-style options, so you can settle anytime before expiration.
Q: Does options trading affect my futures positions?
A: Yes. Both share the same Futures Wallet balance, so fund allocation impacts margin availability across products.
Final Thoughts
Binance Options offer a powerful blend of flexibility and strategic utility for both novice and experienced traders. Whether you're hedging a long-term crypto position or capitalizing on short-term volatility, options provide a structured way to express market views with defined risk.
However, success requires understanding key variables like premium cost, time decay, and price sensitivity. Always test strategies with small positions first and maintain a disciplined approach to risk management.
👉 Unlock new levels of trading precision with next-gen financial tools.
By mastering Binance Options, you’re not just trading—you’re building a smarter, more resilient investment strategy for the dynamic world of digital assets.
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