Cryptocurrency exchange Binance is to offer options contracts for the worldâ€™s seventh largest cryptocurrency, litecoin.
- According to a blog post on Tuesday, the litecoin contracts will go live on Wednesday at 07:00 UTC.
- A Binance representative told CoinDesk via email that the latest listing comes in response to “user demand,” adding that options are an “important hedging tool, especially during a market rally.”
- Options are a type of financial instrument enabling traders to buy or sell an underlying asset at a predetermined price either before or on a particular date.
- The expiry dates on Binance’s contracts range from 10 minutes through to 24 hours, shorter than traditional options. They can be executed at any time before the expiry date.
- Litecoin is Binance’s sixth options contract listing.
- The global average spot price for litecoin is just below $90 at press time, up 1.56% over 24 hours, according to the CoinDesk 20.