Top-tier crypto exchange, Binance, has announced that its derivatives arm, Binance Options, will introduce “T+3” daily call and put options for BNB, the native cryptocurrency of the exchange.
As of the upcoming Wednesday, Binance Options will commence the listing of T+3 BNB/USDT options daily at 08:00 UTC, as mentioned in the official blog post of the exchange. Additionally, the exchange clarified that no new listings would be made once the long-term contracts reach their expiration.
The term “T+3” denotes a requirement to finalize a securities transaction within three days after the trade has been executed. This means that individuals can engage in trading T+3 daily options up until two days prior to their expiration. As a result, when these options are initially introduced, they will have a starting duration of three trading sessions.
This addition is set to offer traders increased adaptability and enhance the current range of offerings by the exchange, which already comprises long-term BNB options and T+2 daily BNB options.
T+3 daily options will have the same specifications as other BNB options, with each call and put contract representing 1 BNB and expiring at 08:00 UTC every day. The contracts can only be exercised at expiration and will be settled in USDT.
Options represent specialized contracts that grant the purchaser the privilege, without the mandatory requirement, to either purchase or sell a specific asset at a fixed price before or on a designated date. A ‘call’ option confers the right to purchase, whereas a ‘put’ option confers the right to sell.
The initiation of T+3 daily options coincides with increased instability in BNB’s value. The digital currency plummeted to its lowest in 14 months, reaching $203, following a revelation by The Wall Street Journal that Binance facilitated the transfer of funds overseas for Russian clients, circumventing global sanctions. This revelation has intensified existing regulatory anxieties concerning the exchange.