Binance Expands Commodity Options Amid Record Gold Volumes

Binance has added gold and silver options to its platform, following the success of its commodity perpetual futures. The new contracts are European-style and settle in Tether (USDT), with pricing calculated from multiple independent third-party data vendors that track traditional gold and silver markets.

The move comes after the exchange's commodity perpetuals recorded a peak daily trading volume of $7.77 billion for gold and $7.27 billion for silver, representing 3-8% of COMEX gold volume and 9-20% of COMEX silver volume at the time those peaks occurred.

According to Shunyet Jan, head of exchange and trading at Binance, gold hitting record highs pushed more users toward commodity exposure. He also pointed to demand for inflation hedges outside traditional equities as a factor behind the launch.

The new contracts are limited to retail traders buying call options, which provide upside exposure for a fixed premium, and put options, which protect against price declines. Writing options is reserved for designated market makers only.