Pre-market trading offers a unique opportunity for traders to speculate on the price of tokens before their official public release. This guide covers the essential mechanics, rules, and common questions surrounding this advanced financial instrument.
What Is Pre-Market Trading?
Pre-market trading allows users to engage in futures contract trading for tokens that have not yet been officially launched. These pre-market futures contracts are essentially USDT-margined delivery contracts. They enable traders to take long or short positions based on their expectations of a token's future market price.
This market operates independently of the eventual spot listing, providing a platform for price discovery based on community sentiment, project fundamentals, and market demand before a token becomes widely available for trading.
How Is the Delivery Price Determined?
The settlement process for pre-market futures contracts follows specific protocols depending on the token's launch outcome.
For Successfully Launched Tokens
The platform calculates an index price derived from multiple major exchanges' spot trading pairs. The final delivery price is determined by taking the arithmetic average of this index price over the one-hour period preceding settlement. Should any market manipulation or abnormal pricing occur during this period, the platform reserves the right to adjust the final delivery price to ensure fair settlement.
For Canceled or Delayed Token Launches
In cases where a project cancels its token issuance, fails to announce a launch plan within six months, or presents other risk control issues, the settlement process differs:
- The actual delivery price equals the minimum price movement (tick size) of the contract.
- An estimated delivery price may be calculated based on the average index price recorded every 200 milliseconds during the rolling one-hour period before settlement.
The platform maintains the right to add other reputable exchange spot prices to the index calculation as needed.
When Does Delivery Occur?
The timing of contract delivery depends on the token's launch status:
- Successful Launches: For tokens that launch successfully and list on the spot market, delivery occurs three hours after the spot listing goes live. The exact delivery date is announced officially and displayed on the trading interface.
- Canceled Launches: If a project cancels its token or the platform identifies significant risk concerns, the contract may be delisted early. The specific delivery date will be announced via official announcement and reflected on the trading page.
API users should note that the expTime field in trading product interfaces indicates the delivery date. This date is subject to change, and API users are advised to monitor updates through push interfaces or regular query intervals.
What Are the Trading Fee Rates?
The fee structure for executing trades in the pre-market follows the same schedule as standard delivery contracts. This ensures consistency across the platform's futures products. Fees are typically charged on both the opening and closing of positions.
👉 View real-time fee schedules and calculators
How Are Delivery Fees Charged?
Upon contract settlement, a delivery fee is applied. Currently, the pre-market delivery contract incurs a 1% delivery fee at the time of settlement. This fee is subject to change, and any adjustments will be communicated through official platform announcements well in advance.
Does Pre-Market Trading Affect the Final Listing Price?
The pre-market is a derivatives market driven by trader speculation and sentiment. The price discovered here may not accurately reflect the final listing price on the spot market. While it serves as a valuable indicator of market expectations, the actual launch price of a token is influenced by a separate set of factors, including initial liquidity, broader market conditions, and launch pool dynamics. Therefore, the two prices are not directly correlated.
What Are the Relevant OpenAPI Changes?
For developers and API users, new parameters have been introduced to distinguish pre-market products. The trading product (instruments) interfaces now include a ruleType parameter. Its enum values are:
normal: Represents a standard trading product.pre_market: Identifies a pre-market trading product.
For comprehensive details on these and other API modifications, developers should consult the official API update logs.
Frequently Asked Questions
Q: What is the main purpose of pre-market trading?
A: Pre-market trading allows investors to hedge risks or speculate on the future price of a digital asset before it is officially available on the spot market. It provides a mechanism for early price discovery based on current market sentiment.
Q: Who can participate in pre-market trading?
A: Generally, any user on the supporting platform who has completed the necessary identity verification and understands the risks associated with derivatives trading can participate. It is considered an advanced trading feature.
Q: Are the profits from pre-market trading guaranteed?
A: No, profits are never guaranteed. Pre-market trading involves significant risk due to the volatility of unlaunched tokens and the potential for projects to be canceled or delayed, which affects settlement. Always trade with caution.
Q: How is the index price for a pre-listed token calculated?
A: The index price is calculated by aggregating and weighting the spot prices from a basket of at least three major and reputable exchanges to create a robust and manipulation-resistant reference price.
Q: What happens if I hold a position and the token launch is canceled?
A: If a launch is canceled, the platform will settle all open contracts based on a predetermined procedure, typically using a minimum tick size value. The exact settlement method will be detailed in the official announcement for that specific event.
Q: Where can I learn more about advanced trading strategies?
A: Many platforms offer educational resources, including tutorials, articles, and webinars, that cover futures and pre-market trading strategies. 👉 Explore more advanced trading strategies to deepen your understanding.