What is Pre-Market Trading?

Pre-Market Trading is an over-the-counter (OTC) trading service designed for trading new tokens before they are officially listed. It allows buyers and sellers to set up quotes and match trades, ensuring transactions at desired prices before tokens are officially listed.

 

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Introduction to Pre-Market Trading 

How to Get Started With Pre-Market Trading 

How does Bybit Pre-Market Trading work?

On Bybit Pre-Market Trading, users can buy or sell a particular token before its official release. Sellers and buyers create orders and set quotes in advance. All transactions are denominated in USDT. 

 

• As a Buyer: To place a buy order, users pay a transaction fee and the order value. Once your order is matched with a seller, you only need to wait for the settlement time for the seller to deliver your tokens. If the seller fails to deliver tokens at the settlement time, buyers receive 90% of the seller’s collateral as compensation on top of recovering the payment amount.

 

• As a Seller: To place a sell order, users pay a transaction fee and provide collateral based on the pledge rate. Sellers must be ready to deliver tokens at settlement time. Tokens must be in the Unified Trading Account by settlement time. Once the tokens are delivered successfully, you will receive the payment in your Unified Trading Account. Failure to deliver the tokens in full and on time will result in the loss of the entire collateral placed for the corresponding pre-market order. 

 

Please take note that the token will only be delivered at the settlement time. To view the settlement time of your active pre-market orders, go to your Order History here.

How is the price for Pre-Market Trading determined?

Prices for pre-market trades are determined by buyers and sellers. They can set a price quote, which may differ from the price of the token once it is officially listed.

 

 

 

How is the Last Traded Price Change determined?

The Last Traded Price Change is calculated as follows: 

(Current Transaction Price - Previous Transaction Price) / Previous Transaction Price.

What are the key advantages of Pre-Market Trading on Bybit?

Bybit Pre-Market Trading provides an early opportunity to participate in the hype around new tokens before their official launch. Users have the potential to acquire trending tokens at more favorable prices compared to post-launch trading.

How do I complete the delivery?

To complete the delivery, you will need to have sufficient tokens in your Unified Trading Account by settlement time. Upon settlement time, the system will deliver the token to your buyer and the payment amount will be credited to your Unified Trading Account.

 

Here are two (2) ways to get the token:

1. Deposit enough tokens from an external Wallet to your Unified Trading Account

2. Purchase tokens in the spot market after the trading pair is listed before settlement time

Can I complete the delivery to the buyer before settlement time?

No, the delivery will only be conducted at the settlement time even if you have prepared the token in your Unified Trading Account beforehand.

What are the risks associated with Pre-Market Trading?

All trades carry risks, and Pre-Market Trading is no exception.

• For sellers, failure to deliver tokens in full and on time will result in the loss of collateral for the order.

• For buyers, if the seller fails to deliver tokens in full or on time, compensation and a refund will be provided. If the seller delivers on time, you'll get the tokens that you paid for.

How is the pledge rate determined?

Pledge rates are determined based on various factors, including the token’s perceived risk and volatility. For specific pledge rates, please refer to the order page.

How to ensure liquidity in Pre-Market Trading?

Liquidity in Pre-Market Trading is secured through the active participation of traders. As an over-the-counter (OTC) market, buyers and sellers set quotes in advance, ensuring price stability and liquidity.

Is a Unified Trading Account Required for Pre-Market Trading?

Yes, a Unified Trading Account (UTA) is required to perform pre-market trades. To learn more about upgrading to a UTA, please refer to this article.

What is the transaction fee rate in Bybit Pre-Market Trading?

The transaction fee rate is specific to the total order value and varies based on the traded token. Please refer to the latest fee rate stated on the Pre-Market Trading page.

 

Please note that no fee will be charged for canceled orders. However, if the order has been matched with a counterparty and the seller fails to fulfill the order, the transaction fees will not be refunded to the seller's account.

Are there fees for failure to deliver within the settlement period?

Yes. In the event of a seller's failure to deliver at the settlement time (not within the settlement period), you will lose 100% of the collateral placed. Of this, 10% is allocated to the platform as a fee, while the remaining 90% is distributed to the buyer as compensation.

Does Pre-Market Trading support the use of leverage?

No, leverage is not available for Pre-Market Trading at the moment. Traders must hold the entire amount of funds or tokens they intend to trade.

What happens if there is a delay in the token listing schedule?

• In the event of a listing delay, filled orders in Pre-Market Trading remain valid.

• A new settlement time will be announced later through notifications and emails.

Is it possible to cancel orders once they are matched?

No, it is not possible to cancel an order once it has been matched with a counterparty. Indeed, matching orders means that each counterparty has already purchased or sold the coin. At this point, the order status will change to "pending" and the coins will be released upon settlement. Please note that only incomplete orders can be canceled.

Does Pre-Market Trading affect the initial listing price of tokens on Bybit?

While Pre-Market Trading may reflect market expectations, the official listing price is influenced by various factors and may not directly correlate with the pre-market price. Both prices are ultimately determined by the market.