Binance Enters Traditional Commodity Markets with Gold, Silver Options Trading
Binance has expanded its services by launching options trading for gold and silver through its Abu Dhabi entity. The contracts, which trade against the Tether (USDT) stablecoin, allow users to speculate on precious metal prices without requiring ownership of physical assets.
The new commodity contracts are structured as European-style options, meaning they can only be exercised at the time of expiration. These products are available for gold (XAUUSDT) and silver (XAGUSDT) with short-term maturities, including one-day and one-week expiries.
To manage risk for less experienced traders, Binance has restricted retail participation, permitting only the purchase of options while prohibiting the selling of naked positions. Trading hours for these options are tied to the underlying commodity market schedule, operating from Sunday 6:00 pm ET to Friday 5:00 pm ET.