{"id":4443,"date":"2022-05-27T13:53:20","date_gmt":"2022-05-27T06:53:20","guid":{"rendered":"https:\/\/test.wikibinance.com\/?p=2376"},"modified":"2022-12-13T12:19:24","modified_gmt":"2022-12-13T05:19:24","slug":"vol-option","status":"publish","type":"post","link":"https:\/\/wikibinance.com\/en\/knowledge\/vol-option.html","title":{"rendered":"What is Vol Option? How to buy Vol Option on Binance"},"content":{"rendered":"

Binance<\/a> Option,<\/strong> commonly known as American-style options, is an optimized version of the traditional options contract. It was developed to improve the user experience and simplify barriers to engagement for individual users. <\/span>As the market grew and became more complex, Vol Option<\/strong> is considered as a feature aimed at supporting investors in transactions, making cryptocurrency investments more effective.<\/span><\/p>\n

What is Vol Option?<\/b><\/h2>\n

Vol Option is often referred to as “Straddle”. This is a neutral options strategy that includes simultaneously buying both the put options and call option of a base asset class, with the same strike price and expiration date. That means the system can make two transactions at the same time.<\/span><\/p>\n

Buying Vol Option can help investors keep a close eye on market volatility, no matter which way the market goes. This makes it possible for the investor to earn unlimited profit, as long as the underlying asset fluctuates away from the break-even point and the maximum loss for the option is considered as<\/span> the premium that investors have to pay.<\/span><\/p>\n

\"Vol
Buying Vol Option can help investors keep a close eye on market volatility<\/figcaption><\/figure>\n

However, premium cost of Vol Option are relatively high compared to a call or a put option. Investors may deal with the risk of losing the premium in case the market does not fluctuate much.<\/span><\/p>\n

Vol Premium = (Call Premium + Put Premium) * 0.95<\/p>\n

*5%<\/span><\/i> Discount <\/span><\/p>\n

Currently, Vol Option has been updated by Binance on the mobile app.<\/a> Users can update the latest version to experience. Vol Option is compatible with iOS App 2.20.0 or Android App 1.31.0<\/span><\/p>\n

How to buy Vol Option on Binance<\/b><\/h2>\n

As mentioned above, investors can buy Vol Option to make a profit in significantly volatile market conditions.<\/span><\/p>\n

Step 1:<\/b><\/p>\n