Binance which is the world’s largest crypto exchange has recently announced the addition of options contracts for both Ethereum and XRP. The financial derivatives with leverage are options and with the help of these, the contract buyer will be able to buy or sell their assets at a particular price which has been specified during the time of expiry.
— Binance (@binance) May 25, 2020
Binance becomes first exchange to add XRP options
This has to be noted that with this recent addition to it, Binance becomes the first exchange which has added support to XRP options to the platform. Before this, Derbit was the only exchange which has been leading the market in providing Ethereum options. Not only this, but it is also a leading exchange when it comes to Bitcoin options as it is holding around 75% market share which is very high. Approximately a year ago, the exchange has been offering Open Interest for Ethereum options for around $39 million. Currently, it is the one leading the market and is at an all-time high as a number of ETH are concerned. Now it has been seen that with the addition of options contracts for both ETH and XRP, Binance is also aiming towards leading the market while leaving Derbit behind.
Futures and Options trading dependent on traders preference
Over time, it has been seen that BitMEX is one of the major exchanges that offered XRP futures along with Binance, OKEx and a few others. However, among other exchanges, Binance is the one that offers futures contracts for various cryptocurrencies. It has to be noted down that the trading of both Futures and Options will be completely dependent on the preferences of the traders. This is quite a big announcement by the exchange and now it will be quite interesting to see how it is going to perform in this sector and whether it will be able to lead the market or not.
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