Binance Dual Investment - Explained

The crypto world is a highly volatile and fast-evolving space. The price swings range from a few to multiple percentage points. Keeping in mind the volatility and major price swings, Binance has come up with a rather interesting investment product called Binance Dual Investment.
As per Binance, you bet on the direction of the market, commit your crypto, and lock in a yield. Regardless of your position, you’ll earn an enhanced yield based on two assets.
There are two types of Dual Investment products: “Up-and-Exercised” and “Down-and-Exercised”.
1. For Up-and-Exercised products
If the Settlement Price is above (up) the Strike Price, the product is “exercised”
• The product is “exercised” if Settlement Price is greater than or equal to Strike Price
• The product is “not exercised” if Settlement Price is lesser than Strike Price
2. For Down-and-Exercised products
If the Settlement Price is below (down) the Strike Price, the product is “exercised”.
• The product is “exercised” if Settlement Price is lesser than or equal to Strike Price
• The product is “not exercised” if Settlement Price is greater than Strike Price
For both types of Dual Investment products, you will receive the returns in deposit currency if the product is not exercised. You will receive the returns in alternate currency if the product is exercised.
Click on the link to explore the dual investment product www.binance.co...
Watch the video for a better understanding of the product.
Please DYOR. This is not trading advice.
If you find this helpful, please consider supporting through subscribing.
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The information provided through this work is intended solely for educational purposes and must not be treated as investment advice. Any lapses in presenting any of the information correctly are ours alone. We disclaim any liability associated with the use of this content.

[@illmgreric6242]

Your video is under rated. 🙌 Clearly explained. Thank you.

[@javiodl4451]

for a bit more nuanced investors: this is the exact same payoff structure as the one of a covered call (CC). the difference is you dont get the funding until settlement (vs at the beginning in CC), I like it because the other option in Binance is to sell vanilla calls however it has to be collateralised by USDT, you cant pledge BTC as collateral

[@saiobulreddy4619]

In [Down-and-Exercised] if I subscribe with $1000 USDT to BNB with 100%APY for 10 days with stack price of $400 and BNB Ref. Spot Price of $380. After 10 days if the settlement price < $400 (i.e 320) which is exercised in the case of Down-and-Exercised then Do I get the Investment Return same as they show at the time of investment or will it change? I'll end up with profit/loss comparatively with the current market price of $320?

[@everythingblockchain]

Sorry for not replying earlier. The only thing that changes is the currency that you get back when the order gets exercised. You still get the reward even if the order is not exercised but in the native currency. Think of it like this, You claim 1 BTC will be worth 60000 USDT at the end of the month. If the order gets exercised, you get 60000 USDT and not 1 BTC that you had deposited. If it doesn't reach 60000, you get back 1 BTC plus the interest. The same goes for Down and exercised where you are betting on the price to go down. I hope this explains.

[@mahavirsinghrajpurohit8004]

I have one question it goes and touches exercise price. For instance strike price 400 and delivery date is 31st March and today date is 24 March. Suppose on 26 March you it exercised the price 400 and after that it on delivery date it never exercised the 400. Then what will happen?

[@everythingblockchain]

Hey. The price is exercised on the expiry date. If it's below the price on that date, it does not get exercised.

[@TrueWandering]

Thank you. Clearly explained. I do have one question. In the example you shown, if the transaction is not exercised, meaning you were wrong, you still received .0073 BTC from your 1 BTC subscription. Am I missing something, because you still gained .0073 BTC? How can you lose?

[@TrueWandering]

Ah never mind. I found the answer from another video. If the transaction is not exercised, I will be given the spot price which is lower than my initial subscription. You might want to discuss the risk and computation as well for future videos.

[@everythingblockchain]

@@TrueWandering Hey. Thank you for dropping by. If the transaction is not exercised, you get the same amount of BTC back. The spot price for the BTC however will be lower than the subscribed one. Thank you for your advice. Will keep that in mind for future videos. Cheers

[@govindk.1797]

@@TrueWandering bro plzz explain what will I loose , like if I invested $ 100 of usdt if product is exercised I get profit but not exercised then also I get 104 usdt so where is the loss . Or is i get just 4 usdt instead of 104? Plzz explain clearly

[@TrueWandering]

@@govindk.1797 Say the price now is $500. If the strike price is $1,000, for easier reference, it will be exercised if the price is $1,000> by the end date. However, by the end date the price is $300, then you lose $200. The risk here is that you cannot sell until the end date is reached. So even if you see the price going below your entry price, you can't do anything but wait. Then at the end, you will receive @ $300 price x any multiplier if there are.

[@govindk.1797]

@@TrueWandering thanks alot mate 😊

[@allthatjazzshow3299]

Does it usually just work for a day? Also, if I'm getting it right, if you lose, you just get your money back in a different currency, but you still get it back either way

[@everythingblockchain]

Thank you. Yes, that is correct. You get it in a different currency.

[@rantsh]

From what I'm understanding, it seems like the worst case scenario happens if there's a massive bull run (for an up and exercise position). For example, for the case shown in the video if for whatever reason BTC is at $90K (an extreme example) binance will only pay you 45K and binance pockets the difference, is this correct or am I missing something?

[@everythingblockchain]

@@rantsh True that's when you are at a loss.

[@justice2108]

I subscribed for a dual investment plan. The delivery date has passed over a day ago and I still haven’t received my crypto back, nothing has been sent to my spot wallet at all

[@JoelMogera]

Where do I see the order details or could I see how much can I gain once it's ordered?

[@everythingblockchain]

It is a straight calculation based on the option you choose. The gains are capped to the tune of the target price.

[@fredericdick5527]

I don't understand how binance doesn't waste money on this product. You win: you win, you lose, you win, incomprehensible for my intellectual level, if you have any clarifications, thank you in advance !!!

[@everythingblockchain]

Hi. Let's suppose you bet on btc price going up and you use the up and exercised option for a certain strike price. Let's suppose 65k considering the price of btc below that. If your option gets exercised and the price of btc goes above 65k, you receive the 65busd plus the interest for it in which case your btc is gone. For binance, it's more money given that your btc is valued at a price higher than 65k. Hope this helps.

[@fredericdick5527]

@@everythingblockchain Wouahh ,it's clear now , i understood ,thank's a lot ,you're so sympathic

[@billyj2502]

So in your example in the video you only make money out of it if the price of btc is only past the strike price by less that your interest because if you never done the dual I ivestments and the price settled at 50 you would be up more? Am I getting this right and if so what is the point?

[@billyj2502]

So if it settled at 45100 in your e, ample you would have made 200 dollars and if it settled at 44000 you would have lost 600 odd dollars, am I understanding this correctly?

[@billyj2502]

That's seems like high risk low reward to me? That's why I'm thinking I must be getting it wrong

[@Shaggyyyz]

It says you will get $45328.5 if the price is more than 45K but what if the price goes to 50k on the day of expiry ?

[@Shaggyyyz]

Will they calculate accordingly or it will be loss as the price went pass by ?

[@everythingblockchain]

@@Shaggyyyz Hey. Thanks for dropping by. It is as per 45K.

[@sjonit1]

@@Shaggyyyz if it goes to 50K it means you will miss out on 5k profit. For example you bought btc at 40k, then invested in dual investment with strike price at 45k. You are essentially selling the BTC at 45k and get $328.5 interest. So you get $45,328.5. But if you held BTC you could sell at 50k. Binance keep the difference.

[@MLouah-gp9ef]

So it’s either you accumulate Fiat or crypto basically.

[@everythingblockchain]

You nailed it.

[@salindaperera2627]

Nicely explained. Very clear 👌🏻 thank you ❤

[@allthatjazzshow3299]

Very well explained. Thank you!

[@Sijan.G.Creations]

new subscriber here lets be frn