Binance has launched options on US-listed stocks and ETFs, settled in real shares rather than cash. The contracts do not exercise themselves.
Every mainstream US retail broker automatically exercises in-the-money options at expiration. Binance states that its contracts will not, and that a position left without an instruction is sold on a best-efforts basis before the close.
Binance announced the launch of Stock Options on September 1 at 08:30 UTC, offering physically settled call and put contracts on US-listed equities and exchange-traded funds through a partnership with two brokerage entities.
Exercise Requires an Instruction
The product terms state that Stock Options can be exercised at any time before the cut-off on the relevant expiration date, and that the user is solely responsible for monitoring open positions and deciding whether to exercise them. Exercise requires submitting an instruction through the Binance platform.
Binance states that an option not exercised before the cut-off is subject to auto-liquidation, meaning the position is sold on a best-efforts basis before trading closes. It adds that an option may expire without value and that the entire premium paid may be lost.
The announcement states explicitly that a contract in the money at expiration will not be automatically exercised unless an exercise instruction has been submitted.
The Mainstream Default Runs the Other Way
At US retail brokerages, exercise by exception is the standard. The Options Clearing Corporation’s ex-by-ex procedure automatically exercises contracts that finish in the money by a set threshold, and brokers including Robinhood, Charles Schwab, and Fidelity apply it unless a customer instructs otherwise.
The practical effect is that a trader accustomed to those platforms does nothing at expiration and receives the shares or the cash difference. On Binance, the same inaction produces a best-efforts sale rather than delivery of the underlying.
Binance does not disclose the cut-off time in the launch announcement, directing users to its Stock Options FAQ for contract specifications, expiration and settlement details, position limits, and risk management.
Physical Settlement Distinguishes It From Crypto Equity Products
Stock Options settle by physical delivery of the underlying shares, which are custodied by Alpaca on behalf of Binance users. That structure differs from the equity-linked products crypto exchanges have offered to date, which typically settle in cash or track prices synthetically.
It also differs from Binance’s own tokenized equities. The exchange launched bStocks in June, tokenized US securities backed one-to-one by underlying shares and tradable around the clock on-chain. Options trade on US market hours instead.
Regular trading runs from 9:30 am to 4:00 pm ET for most US stock options, with certain ETF and ETN options trading until 4:15 pm ET as late-close exceptions. Pre-market and post-market trading are not supported. Outside those hours, new orders are not accepted, existing orders remain on the book, and users can cancel but not match.
Phase 1 Is Long-Only With Limit Orders
The initial release permits buying calls and buying puts only. Writing options and short exposure are not available, which caps the maximum loss for a buyer at the premium paid and removes the assignment risk that comes with selling contracts.
Only limit orders are supported in Phase 1, so market orders are unavailable. Funding draws on a required Funding Account, plus Spot Account and Flexible Earn balances, in USDC, USDT, USD1, U or BNB.
Access requires completing an Options Suitability Quiz and signing a disclaimer. Users who have not opened Binance Stocks can open stocks and options together. Availability varies by region, and Binance states the announcement is general and the products may not be available everywhere.
Nest and Alpaca Sit Between Binance and the Market
Nest Trading Limited acts as an introducing broker and routes orders to Alpaca Securities LLC, its US clearing broker partner, for execution, clearing, settlement, and custody. Binance states that it does not handle or custody user securities.
Nest Trading Limited is authorized by the Financial Services Regulatory Authority of Abu Dhabi Global Market to deal in investments as principal and as agent, arrange deals in investments, manage assets, provide money services, and arrange custody. Related entities Nest Exchange Limited and Nest Clearing and Custody Limited hold recognition as an investment exchange and a clearing house, respectively.
Binance discloses that it may receive payment for order flow remuneration for directing user orders.
Options Follow a Rapid Equities Build-Out
Binance opened US stock trading to non-US customers on June 1, covering more than 7,000 US stocks and ETFs. It reported $400 million in assets under management within a week and $1 billion within 30 days, alongside more than $3 billion in cumulative trading volume, on figures the exchange provided itself.
Options add derivatives to a stack that now runs from fractional shares through tokenized equities. Coinbase added stock trading in December 2025, and Robinhood and Kraken have expanded tokenized equity offerings over the same period.
