Binance Unveils Stock Options for Eligible Users
Binance has launched stock options for eligible users globally, allowing them to buy calls and puts on selected U.S.-listed stocks and exchange-traded funds. The platform uses physically settled contracts, which deliver underlying shares when qualifying contracts are exercised. This is a departure from cash-settled derivatives, which settle by paying the difference between a contract's strike price and the asset's settlement value.
The maximum direct loss for buyers is limited to the premium paid for the contract, but users must still be aware that contract values can fall quickly due to underlying share prices, time before expiration, expected volatility, and interest rates. The exchange has partnered with Alpaca Securities as the clearing broker and Nest Trading Limited as the introducing broker. Alpaca describes itself as a regulated self-clearing broker-dealer.
Users can monitor resulting positions through Binance's stock trading interface and Funding Account. The platform does not support pre-market or after-hours trading, and users must check their account access and local restrictions before trading. The next developments to watch are the addition of more underlying securities and broader order support.