How to trade Tether Gold (XAUT) Options on Bybit
Bybit is the first crypto exchange to offer options on a tokenized gold asset through the Tether Gold (XAUT) Options product. The underlying asset, XAUT, is a crypto token backed by physical gold, but the derivative itself is cash-settled in Tether (USDT); you never need to hold XAUT or actual gold when trading these contracts. This guide focuses on the specifics of the XAUT Options offering on Bybit.
Key Takeaways:
XAUT Options are cash-settled derivatives based on XAUT, a token that’s backed by physical gold.
Bybit is the first crypto exchange to offer options on a tokenized gold product, with liquidity provided by Orbit Markets.
What makes Tether Gold (XAUT) Options different?
The underlying asset is what distinguishes these contracts from other options products on the market. XAUT is a token backed by physical gold that’s issued by Tether, with each token corresponding to one troy fine ounce of gold held in secure reserves. When you trade XAUT Options on Bybit, however, you are not acquiring XAUT or any claim on gold: the contract is a cash-settled derivative, and any payout at expiration is credited in USDT.
Bybit is the first crypto exchange to list options on a tokenized real-world asset (RWA). Liquidity for the XAUT Options market is provided by Orbit Markets, a derivatives liquidity specialist with experience across both digital asset and traditional finance markets.
For a full explanation of how Bybit Options work, refer to our general Options guide.
Before trading XAUT Options
XAUT Options are not available in all regions. Check your local regulatory eligibility before proceeding. You will need your Unified Trading Account (UTA), with margin mode set to Cross Margin (by default) or Portfolio Margin (depending upon your eligibility), since Isolated Margin is not supported for any options contract on Bybit.
Your account must be funded in USDT, as it is both the collateral and settlement currency for XAUT Options. No separate XAUT balance is required. If you have not yet enabled options trading, you may need to complete any platform-level product activation shown during your first visit to the Options page.
How to buy an XAUT Call or Put
Step 1: On the Bybit homepage, go to Trade in the top navigation bar, then select Options.
Step 2: At the top of the Options trading page, select the XAUT tab to filter the options chain to XAUT contracts. Choose your preferred expiration date and locate your target strike price in the chain. Calls are listed on the left, Puts on the right. Click on the relevant contract to open the order panel on the right side.
Step 3: Enter your quantity, then review the premium, applicable fees and the estimated maximum loss shown for the buyer, and confirm your order.
Closing or holding the position to expiration
A long Call or Put can be closed before expiration by placing an offsetting order in the opposite direction using the same contract, with the same underlying asset, expiration and strike price. Closing early locks in whatever market value remains in the premium, and avoids expiration mechanics entirely.
If you hold until expiration, contracts that finish in-the-money (ITM) are automatically settled in USDT. The settlement amount reflects intrinsic value at expiration, but a net profit is not guaranteed: if the intrinsic value at settlement is lower than the sum of the premium paid and fees, the position closes at a net loss even if it expired ITM. Settlement proceeds appear in your UTA balance.
Bybit has also launched the Gold Hunt campaign to coincide with the XAUT Options launch, allowing XAUT Options traders to earn up to 13,888 USDT. Check the campaign page for current terms and eligibility.
Risks
The maximum loss on a long Call or Put is the premium paid. That loss is fully realized if the contract expires out-of-the-money. Note that time decay works against buyers throughout the life of the contract: all else being equal, premium erodes as expiration approaches. This is why a position can lose value even when the underlying asset moves in the expected direction.
Liquidity depth varies across strikes and expiries.Â
Contracts far from the current XAUT price or near illiquid expiration dates may carry wider bid/ask spreads, increasing entry and exit costs. An expiring ITM does not, by itself, mean a profitable trade: the net outcome depends upon the intrinsic value relative to the total cost.
The bottom line
XAUT Options give you directional exposure to tokenized gold through cash-settled contracts on a crypto-native platform, with USDT settlement and liquidity backed by Orbit Markets. The trade journey runs from the XAUT tab in the Options chain — through strike and expiration selection — to order confirmation using premium and fee data shown in the order panel. Closing before expiration or holding to cash settlement are both viable paths, each with distinct cost implications.
Ready to start? Head over to the Options section on Bybit and explore our XAUT-linked contracts.
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