Binance launched stock options on Sept. 1, giving eligible users access to physically settled contracts linked to selected U.S.-listed stocks and exchange-traded funds. Summary Binance launched physically-settled options on selected U.S.-listed stocks and exchange-traded funds for eligible users globally. Buyers can purchase calls or puts but cannot write contracts or open short options positions. Exercised contracts settle through underlying shares held by Alpaca Securities for Binance users in custody. Phase one supports limit orders only, with maximum buyer losses capped at premiums paid upfront. Most contracts trade during regular U.S. market hours from 9:30 a.m. until 4:00 p.m. Eastern. The product allows users to buy calls, which provide the right to purchase shares at a specified strike price, and puts, which provide the right to sell shares. Each contract has a fixed expiration date, according to the announcement. The exchange is offering the service through Nest Trading Limited as the introducing broker. U.S.-regulated Alpaca Securities acts as the clearing broker and holds shares delivered through exercised contracts on behalf of Binance users. Binance stock options use physical settlement Physically settled options deliver the underlying shares when qualifying contracts are exercised. This differs from cash-settled derivatives, which close by paying the difference between a contract’s strike price and the asset’s settlement value. For a call option, exercise gives the buyer the right to acquire the underlying shares at the strike price. A put gives the buyer the right to sell shares at that price, subject to the platform’s exercise, funding and position requirements. Shares resulting from settlement are held in custody by Alpaca Securities. Binance users can monitor the resulting positions through the platform’s stock trading interface and Funding Account. The exchange did not publish a complete list of supported stocks and ETFs in its general announcement. Users must open a stock’s price page and check whether an Options tab appears. Available expiration dates and strike prices are displayed through the relevant options chain. The contracts represent conventional securities options rather than tokenized stocks or crypto perpetual futures. They follow U.S. market schedules and settle into underlying shares instead of blockchain tokens. Long-only trading limits losses to premiums The initial product is long-only. Users can buy calls and puts but cannot write options or create uncovered short positions. This removes the open-ended risk associated with selling certain options without holding the underlying asset. For buyers, the maximum direct loss is limited to the premium paid for the contract. A contract can expire without value if the market price does not move sufficiently beyond its strike price before expiration. Defined losses do not make options low-risk products. Contract values can fall quickly because they depend on the underlying share price, remaining time before expiration, expected volatility and interest rates. Users must complete an options suitability questionnaire and sign a disclaimer before trading. Customers who have not activated Binance’s stock service can open the stock and options products through the same onboarding process. Only limit orders are supported during phase one. Traders must specify the maximum price they are prepared to pay rather than submitting market orders that execute at the best available price. The exchange has not disclosed when it might add other order types, options writing or multi-leg strategies. The phase-one label indicates that the product could change, but no additional rollout schedule was announced. Nest and Alpaca divide the brokerage roles Nest Trading acts as the introducing broker, providing the interface through which eligible Binance users submit orders. Alpaca Securities handles the U.S. brokerage functions behind execution, clearing and custody. Alpaca describes itself as a regulated, self-clearing broker-dealer. It previously partnered with Binance when the exchange launched direct access to U.S. stocks and ETFs in June. Nest Trading is authorized by the Financial Services Regulatory Authority of Abu Dhabi Global Market. Its permissions cover activities including arranging investment transactions, dealing as an agent and arranging custody. The structure keeps securities execution and custody within regulated brokerage entities while allowing customers to access the service from a Binance account. The exchange itself is not described as the U.S. clearing broker. In related coverage, crypto.news reported that ETFs reached 25% of Gen Z equity trading volume on Binance during early August. Binance noted that its direct-equities data covered a short period and did not establish a lasting investment trend. Trading follows regular U.S. options hours Most supported stock options trade between 9:30 a.m. and 4 p.m. Eastern, matching regular U.S. market hours. Certain ETF and exchange-traded note options can remain open until 4:15 p.m. The product generally does not support pre-market or after-hours trading. Binance stops accepting new orders when the relevant options market is closed, although users can cancel existing orders. Unfilled orders remain on the order book during closures but cannot match until trading resumes. U.S. holidays, early closes, exchange halts and other market events can also change availability. Users can fund the service through their Funding Account, Spot Account or Flexible Earn holdings. Supported assets include USDC, USDT, USD1, U and BNB, although the final securities transactions are processed through the brokerage arrangement. The announcement does not provide a complete list of eligible countries. Binance warned that the product may be unavailable in some regions, meaning account access and local restrictions must be checked before trading. The next developments to watch are the addition of more underlying securities, broader order support and any expansion beyond long-only contracts. Binance has not set deadlines for those changes.
