- Binance introduces XRP/USDT Options on Binance Options RFQ.
- European-style contracts allow trading flexibility with options exercisable only at expiry.
- Binance emphasizes risk awareness while noting the potential for significant gains and losses.
The most prominent crypto exchange, Binance, has announced its intention to launch a new service centered on XRP, the sixth most valuable crypto. In particular, Binance will introduce XRP/USDT Options on Binance Options RFQ next Monday, March 11. The exchange communicated the move in a statement via its official website today.
Per the notification, Binance is unveiling the XRP-based offer to expand the list of trading choices available on Binance Options RFQ and enhance users’ trading experience. Notably, RFQ stands for “Request for Quote.”
With Binance Options RFQ, users can directly request quotes for options trades from the Binance OTC Trading Desk. This service provides institutional-grade liquidity, enabling users to execute large-sized options trades over the counter at competitive prices and without fees.
Binance has noted that the upcoming XRP/USDT Options will be European-style options contracts. In contrast to American-style options, Binance Options, being European Option contracts, can only be exercised at expiry but are tradable at the current market price before expiry.
The exchange has emphasized that Options trading carries substantial risk, offering the potential for significant gains as well as losses. The maximum loss for an Options buyer is limited to the premium paid to acquire the Option. Users engaging in Binance Options trading will be bound by the terms outlined in the Binance Options Service Agreement.
Notably, Binance’s announcement of the coming of XRP Options trading services has not had a notable impact on the price of XRP. At press time, the asset trades at $0.6176, with a 1.23% decline. XRP’s current price decline became more pronounced within the past few hours following Bitcoin’s slight retracement.
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