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When you sell a Cash-Secured Put on Binance, the platform freezes enough USDC to buy every share covered by the contract at its strike price. The premium you receive is credited separately and does not reduce that reserve. Required collateral is contracts × contract multiplier × strike price; Binance’s example is one 100-share contract at a $45 strike, which freezes 4,500 USDC.
Why Binance reserves all the USDC
A Cash-Secured Put is a short-put position. You collect an option premium in exchange for agreeing to buy the underlying U.S.-listed stock or ETF at the strike price if the option is assigned. Because the obligation can require a purchase at the full strike value, Binance reserves the entire purchase amount when your sell order is placed.
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Binance Support’s Cash-Secured Put FAQ, published October 15, 2026, says USDC is currently the only supported collateral currency and must be held in the Funding Account. Frozen collateral cannot be used for other orders or withdrawn while it secures the short position.
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The collateral formula
Required USDC = number of contracts × contract multiplier × strike price
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For example, one contract with a 100-share multiplier and a $45 strike requires 1 × 100 × $45 = 4,500 USDC. The premium is income credited separately; it is not subtracted from the 4,500 USDC reserve. Trading fees and any closing costs are also separate from the collateral calculation.
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 frozen USDC and you keep the premium, less applicable fees.
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If the option is assigned
For an in-the-money put that is assigned, the reserved USDC pays for the shares at the strike price. The result is physical delivery of the underlying stock rather than a cash-only payoff. Binance says American-style contracts can be assigned before expiration, including overnight assignment, with notification through app push and email.
Short positions are not automatically closed at expiration. Before the contract ends, you must buy to close, roll the position, or accept the possibility of assignment. Binance states that its stock options are physically settled and that securities processing is handled through Nest Trading Limited as introducing broker and Alpaca Securities LLC as U.S. clearing broker and custodian.
If you buy to close early
You can repurchase the option before expiration. As the closing trade fills, Binance releases the associated collateral after deducting the closing premium and applicable fees. The amount released therefore depends on the fill and costs, not simply on the original reserve.
Cash-secured put selling versus buying a put
| Feature | Cash-secured put seller | Put buyer |
|---|---|---|
| Contract obligation | May be required to buy shares at the strike if assigned. | Has the right to sell at the strike, but no obligation to exercise. |
| Capital tied up | Full strike value for all covered shares is locked in USDC. | Maximum planned loss is the premium paid, plus fees. |
| Potential payoff | Keeps the premium, but bears losses if the stock falls below the effective purchase price. | Can profit from a sufficiently large decline, while the option premium decays if the decline does not occur. |
| Operational duties | Must maintain collateral, monitor assignment and decide whether to close or roll. | Must manage the option before expiry; Binance may auto-liquidate an unexercised long option on a best-efforts basis. |
The seller’s effective share cost, before fees, is generally the strike minus the premium received, but the account still needs the full strike-value USDC reserve until the position is closed or settled.
Expiration-day timing and order limits
On expiration day, Binance switches stock-option products to close-only trading from 3:15 p.m. Eastern Time. Products that trade until 4:15 p.m. ET become close-only at 3:30 p.m. ET. During the close-only window you cannot open or increase a short position, so a seller who wants to avoid assignment must act before the applicable cutoff.
Binance Support lists a maximum of 1,000 contracts per stock-options order and a maximum premium of $500,000 per order. These are platform limits, not a recommendation about position size.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Risks Binance highlights
- Assignment risk: an American-style short put may be assigned before expiration, including overnight.
- Close-out risk: a position may become difficult to close near expiration or during restricted trading windows.
- Collateral risk: the required USDC remains unavailable for other uses while the short position is open.
- Downside risk: if the stock falls sharply, losses on the assigned shares can greatly exceed the premium collected.
Binance’s warning states: “If you write a Stock Option, you are exposed to assignment risk, close-out risk, and collateral risk.” Consider whether you can fund and hold the shares before selling a put; do not treat the premium as a substitute for the required reserve.
A practical checklist before placing a Cash-Secured Put
- Confirm that stock options and Cash-Secured Put selling are available in your region and account.
- Move the required USDC into the Funding Account.
- Calculate contracts × multiplier × strike, then verify the full amount is available after allowing for fees.
- Check the contract style, expiration, strike, multiplier and underlying security.
- Decide in advance whether you will buy to close, roll, or accept delivery if assignment occurs.
- Set a reminder for the product’s expiration-day close-only cutoff, especially for products with the later 3:30 p.m. ET cutoff.
Availability and changing product details
Binance announced its stock-options product on September 1, 2026, initially describing Phase 1 as long-only. The October 15, 2026 release added Covered Call and Cash-Secured Put selling. Availability is region-dependent, and supported collateral, limits, cutoff times and settlement procedures can change. Check the current Binance product terms and Support FAQ immediately before trading. Binance itself is not the securities custodian; its stated broker and clearing partners handle the stock settlement.
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