Binance Adds Gold and Silver Options Amid Historic Rally
Binance has introduced options contracts on gold and silver to its platform, allowing users to hedge against potential market downturns.
The move comes as precious metals have seen a significant increase in demand due to their perceived value as inflation hedges. Gold has reached record highs, with prices crossing $5,000 an ounce for the first time in January, and silver has also surged, touching its own record above $120 per ounce.
The options contracts on gold and silver are European style, meaning they can only be exercised at expiry and settle in USDT instead of physical metal. This limits users' maximum loss to the premium paid and removes liquidation risk associated with short positions.
Binance's head of exchange and trading, Shunyet Jan, stated that the introduction of commodity options builds on the momentum from their commodity perpetual futures, which have seen a peak daily volume of $7.77 billion in gold and $7.27 billion in silver.