- The new commodity options add a crucial component to the platform’s regulated derivatives portfolio and strengthen the robust structural demand.
- In keeping with its ADGM-regulated activities, Binance will continue to implement strong user protection protocols, educational programs, and transparent risk disclosures.
Today, Binance announced that it would start providing commodity options on gold and silver via Nest Exchange Limited, a Recognized Investment Exchange authorized by the Abu Dhabi Global Market. With the introduction, Binance’s TradFi products are expanded, providing users with more crypto-native, compliant options for hedging, diversification, and expressing macro views on key conventional assets.
The new commodity options add a crucial component to the platform’s regulated derivatives portfolio and strengthen the robust structural demand for Binance’s current commodities perpetuals. With the same USDT amount and Binance account that they already use for trading, users may now access commodities perpetuals and options.
“We’ve seen strong demand for our commodity perpetuals since introducing them earlier this year, and commodity options build on that momentum. With gold hitting record highs and investors seeking inflation hedges outside traditional equities, Binance’s commodity options offer users additional compliant, crypto-native ways to diversify without leaving the platform.” said Shunyet Jan, Head of Exchange and Trading at Binance.
Important highlights:
The first cryptocurrency to provide options with actual gold and silver: European-style, USDT-settled options that provide users with additional alternatives for diversification and hedging.
- Building on the momentum of commodities perpetual futures: The introduction expands user access beyond directional commodities exposure into options-based strategies in response to robust structural demand for Binance’s current gold and silver perpetuals.
- Regulated and compliant framework: With KYC/KYB, market monitoring, sanctions screening, and relevant compliance procedures, the offering will be run via Binance’s ADGM-regulated Recognized Investment Exchange.
- Tools with defined risks for retail users: In order to restrict possible loss to the premium paid and avoid the liquidation risk associated with short options positions, retail customers may only purchase (long) options.
- Other tactics for users in institutions: To improve their portfolio strategies and get upfront premiums, qualified institutional users and liquidity providers may write options.
- Extended windows of opportunity in line with underlyings: With a daily break from 5:00 PM to 6:00 PM ET, trading will take place from Sunday at 6:00 PM ET to Friday at 5:00 PM ET.
In keeping with its ADGM-regulated activities, Binance will continue to implement strong user protection protocols, educational programs, and transparent risk disclosures. Binance’s commodities options launch highlights the increasing need for compliant, crypto-native access to conventional market products as crypto and traditional finance collide.
“By giving users more tools to express market views, hedge exposure, and manage risk across some of the world’s most actively traded commodities, Binance is also showing traditional market products can be made more accessible through user-first crypto infrastructure,” added Jan.
Disclaimer: The pricing of digital assets may fluctuate. Your investment’s value might increase or decrease, and you could not receive your money back. Binance is not accountable for any losses you may experience; you are entirely in charge of your financial choices. In particular, there is a lot of market risk and price volatility while trading options. Future performance cannot be accurately predicted from past performance. Prior to trading, you should independently evaluate the transaction’s suitability in light of your personal goals and situation, taking into account the risks and possible rewards. When appropriate, get advice from your own advisors. It is not appropriate to interpret this material as financial or investment advice. For more information, see our Terms of Use, Exchange Rules, Clearing Rules, Exchange Procedures, Clearing Procedures, relevant Contract Specifications and Risk Warning.
FAQ: https://www.binance.com/en/support/faq/dc9e52b4440b48bd900a767cc5024c84
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