2024-08-06 10:11:34What is Bybit Pre-Market Trading?
Bybit Pre-Market Trading is an Over-the-Counter (OTC) trading service that pre-trades a specific token before its official launch on the Bybit platform. It allows traders to buy and sell coins at a desired price and liquidity before these coins are open to the public.
Key Advantages
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Provide an opportunity to get a jump on the hype around new coins before their official launch.
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Potential to acquire trending tokens at favorable prices.
How It Works
On Bybit Pre-Market Trading, users can either buy or sell a particular coin before its official release. Traders have the option to act as makers by creating orders with preset quotes or as takers by taking up matching active orders on the platform. Both buyers and sellers will have to collateralize their assets on the platform, serving as a guarantee for timely settlement. The collateral will be returned upon successful and timely settlement. All transactions are denominated in USDT.
Currently, Pre-Market Trading is only available to Unified Trading Account (UTA) users.
Now, let’s look into the two different roles in Pre-Market Trading.
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Buyer |
To place a buy order, you need to pay a transaction fee along with the payment amount based on your 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 the token at the stipulated deadline, you will receive a percentage of the seller's collateral as compensation on top of recovering your payment amount. |
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Seller |
To place a sell order, you need to pay a transaction fee and provide a collateral amount (based on the pledge rate) for the order. Once your order is matched with a buyer, prepare to deliver the tokens at settlement time. Ensure that the tokens are in your Unified Trading Account by the settlement time for successful delivery. You can either deposit the tokens from an external wallet or purchase tokens in the Bybit Spot Market once it is listed before settlement time. Once the tokens are delivered successfully, you will receive the payment in your Unified Trading Account.
Tokens stored in other accounts and those purchased through pre-market trades are not eligible for delivery. 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. |
Notes:
— Only incomplete orders can be canceled. Once your order is matched with a counterparty, it cannot be canceled.
— Unfilled orders will be automatically canceled once the Pre-Market trading ceases.
Read More
How to Get Started with Pre-Market Trading
Terms Explained
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Settlement Date (UTC) |
The scheduled period during which the seller is expected to have the tokens ready in their Unified Trading Account for delivery. |
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Pledge Rate |
The percentage of an order's total value required as collateral. Failure to fulfill the order within the stipulated settlement date may result in the loss of the seller’s entire collateral. For example, if a seller wants to sell 300 TIA at 1.3 USDT, and the Pledge Rate is 100%, the seller would have to collateralize 300 * 1.3 * 100% = 390 USDT. |
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Trading Duration |
The period where a user can pre-trade specific coins before their official launch on the Bybit platform. Pre-trading activities will cease once the coin has been listed. |
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Transaction Fee Rate |
The transaction fee rate is specific to the total order value and varies based on the traded token. It is a percentage of the total order value of completed orders. Please refer to this fee rate stated on the trading page.
Only incomplete orders, i.e., orders canceled by either the buyer or the seller, will not incur any transaction fees. Once an order is matched, transaction fees for both the seller and buyer will not be refunded, even if the seller fails to deliver. |
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Highest/Lowest/Last Traded Price |
Price indicators that help traders gauge the market depth and spreads |
Changes in Token Listings
In case of a listing delay, pre-market order delivery may be postponed. Filled orders remain valid, with a new settlement time announced later via notifications and emails.
Fee Structure
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Transaction Fees: The transaction fee rate is applied to the total order value of matched orders. Please refer to here for updated fee rates.
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Other Fees: The platform will also charge a 10% fee from the seller’s collateral when the seller fails to deliver at the settlement time. The remaining 90% goes to the buyer as compensation.
Disclaimer
— Please note that pre-market trading may present several risks, including limited liquidity, large bid-ask spreads, and price uncertainty.
— On rare occasions, your matched orders can be canceled due to unforeseen circumstances such as regulatory requirements. In such cases, all your funds will be automatically refunded to your Unified Trading Account to prevent any financial loss.
— The token delivery process may be extended beyond 30 minutes from the scheduled settlement time. Traders are advised to maintain sufficient token available balance in their Unified Trading Account to ensure successful token delivery process. Orders may fail to deliver if the token available balance is insufficient at any point of time within the period.
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