The new contracts are settled in Tether (USDT) and are European-style options, allowing traders to take positions on gold and silver price movements without owning the underlying assets.
The launch adds commodity derivatives to Binance’s product suite, enabling users to trade both crypto and commodity options from a single account.
From cryptocurrencies to commodities
The contracts are available on gold (XAUUSDT) and silver (XAGUSDT) with one-day and one-week expiries. As European-style options, they can only be exercised at expiry.
Binance said the products allow users to trade market direction, express views on volatility and hedge existing exposure. Retail users can only buy to open positions and sell to close them, with selling to open not available.
All contracts are cash settled in USDT, removing the need for traders to hold the underlying commodity. Each daily expiry offers around 10 strike prices, while weekly contracts provide about 12 strike prices.
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Fee waiver to accompany rollout
Alongside the launch, Binance has introduced a promotional fee structure under which maker fees are 0% and taker fees are 0.020%. The offer took effect on July 29 and will remain in place until further notice.
Trading hours mirror those of the underlying commodity markets, running from Sunday 6:00 pm Eastern Time (ET) to Friday 5:00 pm ET, with a one-hour daily market closure between 5:00 pm and 6:00 pm ET. Trading is also suspended during weekends and market holidays.
The contracts are available through the Binance website, mobile application and application programming interface (API).
Regulated exchange, regulated clearing
Binance said the commodity options are traded on Nest Exchange Limited, which is regulated by the Financial Services Regulatory Authority (FSRA), and cleared by Nest Clearing and Custody Limited.
The exchange also said it is the first global cryptocurrency exchange to obtain a comprehensive licence under the Abu Dhabi Global Market (ADGM) framework.
