The competition across cryptocurrency exchanges in the crypto derivatives markets is heating up to a boiling point as yet another big player hints at a possible launch of Option Markets in the coming future. Binance's entry into the Option market follows the recent addition of options to OKEx’s already huge market in January.
Binance leaks option market announcement
In a “convenient” coincidence, both the Binance official account and its founder, Changpeng ‘CZ’ Zhao leaked screenshots on the rumored options market confirming its upcoming launch in the near future. In a test flight mode leak of the new features, Binance listed option trading capabilities and futures hedge mode as new features to the platform.
Options give users the ability to bet on either direction of the price of the asset allowing them to place calls (long) and puts (short) with a right but not obligation to exercise the trade at the strike price at maturity.
CZ Binance further showed a trading beta platform for Bitcoin/ USDT options.
— CZ Binance 🔶🔶🔶 (@cz_binance) April 3, 2020
According to the official leak, the development team is improving the overall user interface to ease trading with new features including Binance Card capabilities, adding over 30+ new fiat currencies, and the new derivatives features.
Competition stiffens in BTC option markets
The overall crypto derivatives market is rapidly growing with bigger exchanges taking up the market share in futures –and are now infiltrating the options market, which has been dominated by Panama-based Deribit exchange.
OKEx launched its Bitcoin options in January this year registering $176 million in total monthly volume traded in the first month. The exchange, while still a bit far from reaching the $248 million record in daily volumes by Deribit – is slowly growing. The addition of Binance to the mix will ensure a close fight for the growing market share in BTC options.