The leading crypto exchange Binance listed the option trading for Ethereum and Ripple contracts. Just a month ago Binance launched the option trading for Bitcoin.

In finance, an option is a contract which gives the buyer the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price prior to or on a specified date, depending on the form of the option, unlike futures the holder is not required to buy or sell the asset if they choose not to.

Options trading allows investors to reduce the risk exposure of their portfolio, generate income, or hold a leveraged position in an asset at a lower cost, but like other financial instruments, Binance says it comes with potential losses.

“Most options purchases will not be profitable, but a minority will be very profitable. Please use at your own discretion.”