Binance launches options trading on over 1,000 US stocks and ETFs

Binance has launched physically settled options contracts on over 1,000 U.S. stocks and ETFs for eligible non-U.S. users. Offered through Abu Dhabi-regulated Nest Trading and U.S. broker-dealer Alpaca Securities, the long-only product supports limit orders and settles in actual shares. Crucially, the contracts do not exercise automatically at expiration; users must manually submit instructions, or their in-the-money positions will face best-efforts liquidation.

Binance stock options launch

• ▪The newly launched stock options are available only to eligible Binance users outside the United States.
• ▪Binance launched physically settled options contracts linked to over 1,000 U.S.-listed stocks and exchange-traded funds on September 1, 2026.

Physical settlement via shares

• ▪Most supported stock options trade during regular U.S. market hours from 9:30 a.m. to 4:00 p.m. Eastern Time, with some ETF options trading until 4:15 p.m. Eastern Time.
• ▪Binance's stock options settle by physical delivery of the underlying shares rather than cash or blockchain tokens.

Alpaca Securities custody arrangement

• ▪Alpaca Securities previously partnered with Binance when the exchange launched direct access to U.S. stocks and ETFs in June 2026.
• ▪U.S.-regulated Alpaca Securities LLC acts as the clearing broker and holds the underlying shares delivered through exercised contracts in custody for Binance users.

Long-only trading restrictions

• ▪The initial phase of Binance's stock options is long-only, allowing users to buy calls and puts but prohibiting options writing or uncovered short positions.
• ▪Phase one of the stock options product supports limit orders only, with market orders currently unavailable.

Manual exercise requirement

• ▪Unlike mainstream U.S. retail brokerages, Binance's stock options do not exercise automatically at expiration and require users to submit a manual instruction to exercise.
• ▪An in-the-money Binance stock option left without an exercise instruction is subject to auto-liquidation, where the position is sold on a best-efforts basis before the close.

Nest Trading broker role

• ▪Nest Trading Limited, an Abu Dhabi Global Market regulated entity, acts as the introducing broker that provides the interface and routes Binance user orders.
• ▪Binance disclosed that it does not handle or custody user securities directly but may receive payment for order flow remuneration for directing user orders.

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