Tencent used to follow its own path, leaving others with no way out; Nowadays, Binance seems to have a bit of this flavor. Just yesterday, Binance's TradFi toolbox was upgraded again - US stock options. When it comes to futures contracts, everyone is familiar with them. But when it comes to options, most ordinary people are probably unfamiliar with them. Here we can briefly break it down: Usually in trading, there is only one action we take to control downside risk: setting a stop loss. But often, after the stop loss is hit, the price returns and the position is lost when looking in the right direction. The maximum loss for the buyer in an option is the premium, which is determined at the moment of the transaction. No matter how volatile the market is afterwards, as long as the position has not expired, it will still be held. For example: A stock is currently priced at $100. You can buy a call option that expires in one month and has an exercise price of $110, with a premium of $3. One contract corresponds to 100 shares, with a total payment of $300 and a nominal value of $10000. No matter how the stock price goes afterwards, you will be most grateful for this 300 in your account. At maturity, no matter how high the stock price rises, buy 100 shares at 110; If the stock price is below 110, the option will be invalidated and the maximum loss will be 300. So, the contract provides leverage and two-way trading; Options are tools for expressing risk management and strategy. Binance is launching physical delivery options, which will be executed and held by US clearing broker Alpaca after exercise, with real stocks received. If we put together the recent releases of Binance TradFi, we can see that their product stack is gradually being replenished, which also embodies the slogan "Why go all over, the coin security department has it". Finally, there are two points that need to be reminded: 1. The upper limit of losses can be determined, and low risk is two different things. Options have time value, and if you look in the right direction but haven't waited for the right time, they will still reset to zero. 2. Binance's in the money options will not automatically exercise. The deadline for submitting exercise instructions is 30 minutes before the close of trading, and funds must be prepared in advance; Call options require cash to be prepared based on the exercise price multiplied by 100 and the number of contracts.