Binance’s Cash-Secured Put requires sellers to reserve the entire stock purchase amount in USDC when they place an order. The locked collateral equals contracts × contract multiplier × strike price; the option premium is credited separately and does not reduce the reserve. For example, one contract covering 100 shares at a $45 strike freezes 4,500 USDC.
The rule applies to Binance’s physically settled Stock Options product, whose availability and operating details can vary by region. Binance introduced the product on September 1, 2026, initially with long-only trading. Its October 15, 2026 seller-strategy release added Covered Call and Cash-Secured Put selling.
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Why Binance freezes all the USDC
A Cash-Secured Put is a short-put strategy. By selling the put, you receive a premium and accept the obligation to buy the underlying shares at the strike price if the option is assigned. Binance therefore sets aside enough USDC to pay for every share covered by the contract.
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1Clear out junk files and repair common Windows errors2Scan for outdated or missing drivers - takes under a minute3Repair Windows errors before they cause bigger problemsThe collateral is held in the Funding Account and cannot be used for other orders or withdrawn while it secures the short position. The premium is separate income: it is not treated as part of the collateral and does not lower the amount Binance reserves.
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The collateral formula
Required USDC = number of contracts × contract multiplier × strike price
Binance’s published example uses the usual 100-share multiplier: one contract × 100 shares × a $45 strike = 4,500 USDC frozen. The same calculation applies at other strikes or contract counts, subject to the product’s order limits.
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What happens after you sell the put
If the option expires out of the money
If the stock remains above the strike at expiration and the put expires without assignment, Binance removes the short position, releases the reserved USDC, and you keep the premium, less any applicable fees.
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When assignment occurs, the frozen USDC is used to purchase the underlying shares at the strike price. Binance says its American-style contracts can be assigned before expiration, including overnight. The platform may notify you through an app push notification and email, but you remain responsible for monitoring the position and having sufficient collateral.
Short positions are not automatically closed at expiration. You must buy to close, roll the position, or accept the possibility of assignment. A put seller can also buy the option back before expiration; as that closing order fills, Binance releases the related collateral after deducting the closing premium and fees.
Expiration-day trading cutoff
On expiration day, Binance switches contracts to close-only trading from 3:15 p.m. Eastern Time for most products. Products that trade until 4:15 p.m. move to close-only at 3:30 p.m. Eastern Time. During the close-only period, sellers cannot open or increase a short position, but they can submit orders intended to reduce or close exposure.
Cash-secured put versus buying a put
| Factor | Selling a Cash-Secured Put | Buying a Put |
|---|---|---|
| Obligation | The seller may have to buy the shares at the strike price if assigned. | The buyer has the right to sell at the strike but no obligation to exercise. |
| Capital required | Binance locks the full strike value in USDC for the covered shares. | The buyer’s maximum planned loss is the premium paid, plus applicable fees. |
| Payoff profile | The seller keeps the premium but bears losses if the stock falls below the effective purchase price. | The put can gain value as the stock falls, while time decay and an expiration above the strike can reduce its value. |
| Position management | The seller must monitor collateral, expiration and possible early assignment. | Binance says an unexercised long option may be auto-liquidated on a best-efforts basis. |
The premium can reduce the seller’s net economic purchase price, but it does not change Binance’s collateral calculation. A sharp decline in the stock can still create losses that exceed the premium received.
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- Binance lists a maximum of 1,000 contracts per stock-options order.
- The maximum premium per order is $500,000.
- The stock-options contracts are physically settled, meaning assignment results in delivery of shares rather than only a cash difference.
- Binance announced Nest Trading Limited as introducing broker and Alpaca Securities LLC as U.S. clearing broker and custodian for the product.
- Availability is region-dependent. Securities handling and custody are performed through the stated broker and custody arrangements rather than by Binance itself.
Supported currencies, contract limits, cutoff times and settlement procedures are product details that can change. Check the current contract specifications and account notices for your jurisdiction before placing a trade.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Risks Binance identifies for option writers
Binance’s October 15, 2026 Cash-Secured Put FAQ warns that writing a stock option exposes a trader to assignment risk, close-out risk and collateral risk. Assignment can occur before expiration for American-style contracts. Close-out risk matters if market conditions, liquidity or platform rules make it difficult to buy back the position. Collateral risk arises because the reserved USDC is unavailable for other uses and because the writer may lose more than the premium received when the stock falls substantially.
Before selling, verify that the Funding Account contains the full calculated reserve, understand whether the contract can be assigned early, and decide in advance whether you would close, roll or take delivery of the shares. There is no published independent success rate or performance statistic for Binance’s Cash-Secured Put product.
Quick Recap
Practical calculation before placing an order
- Identify the number of contracts and the contract multiplier shown in Binance’s order ticket.
- Multiply those figures by the strike price to calculate the required USDC reserve.
- Keep that amount in the Funding Account; expected premium income does not substitute for it.
- Review the expiration date, exercise style, fees and early-assignment terms.
- Confirm your exit plan before the expiration-day close-only cutoff.
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
