OKX pre-market trading: the first choice for SGX contract trading tools, leading cutting-edge innovation

Bitcoin and Ethereum dominated the early days of the cryptocurrency market, but with the rapid iteration and maturity of the industry, more and more emerging projects have begun to emerge. The new coin market is an important part of the cryptocurrency field and has played a key role in the innovation and development of the industry.

The changes in the total market value of the new coin market reflect the progress of innovative technologies and the expansion of application scenarios, which have promoted the evolution of the crypto industry landscape. Its large market penetration potential has increased the global awareness and acceptance of cryptocurrencies. For example, emerging applications such as DeFi and NFT meet users' needs for financial innovation and digital art, and in turn promote the further development of the new coin market. As of July 2024, the total market value of the new coin market accounts for about 30%, reflecting its important position in the overall market.

In response to the enthusiasm of active users to participate in the new coin market, OKX officially launched the pre-market trading function, allowing users to trade delivery contracts for tokens that have not yet been launched, aiming to provide users with a safe and reliable platform to participate in the price discovery of new tokens and lead the innovation of industry trading tools. Users can upgrade the OKX APP to v6.7* and above to experience it immediately.

About pre-market trading

The delivery contract of OKX pre-market trading is essentially a USDT-based delivery contract, which is usually delivered before the new currency is launched on the spot market. Through OKX pre-market trading, users can trade before the currency is officially launched, buy and sell digital asset delivery contracts launched on the platform first, and enjoy 2x leverage.

Generally speaking, in the pre-market trading stage, users can obtain the benefits of price fluctuations by going long or short; in the contract delivery stage, the OKX pre-market delivery contract will be delivered at a specific price on the delivery date; but in the spot launch stage, the OKX pre-market delivery contract does not guarantee that its currency will eventually be launched in spot trading.

From the perspective of industry development, trading delivery contracts for tokens that have not yet been launched not only provides an effective price discovery and liquidity improvement mechanism, but also provides users and project parties with better risk management tools and market participation opportunities.

It is worth noting that some product mechanisms of the OKX pre-market trading market and the standard delivery market are different. Next, some key mechanisms will be selected for interpretation. Among them, the index price uses the latest transaction price of the OKX pre-market trading delivery contract as the index price, and the index price is also used to determine the delivery price of the contract.

Interpretation of core elements

The question that users are more concerned about is, Will OKX pre-market trading affect the price of subsequent currencies listed on OKX? In fact, the price of the OKX pre-market trading market is determined by the market behavior of buyers and sellers, and the price may not accurately reflect the actual issuance price of the new currency. Although pre-market trading can reflect market expectations, the listing price of the currency itself may be affected by other different factors, and the two are not directly related.

In addition, the core elements of the delivery contract of OKX pre-market trading are refined through the table below. Next, we will interpret several of them, such as delivery time, price, etc.

First, delivery time. 1) If the new currency is issued normally and is confirmed to be listed on the OKX currency market, the delivery contract of the pre-market transaction will be delivered before the currency is listed on the spot market. The specific delivery date will be notified separately in the form of an announcement. After the delivery time is determined, it will be displayed in the delivery date on the trading page.

2) If the project party cancels the issuance of the new currency or does not announce the currency issuance plan within half a year or the platform decides in advance not to list it on the OKX currency market in the future due to other risk control issues, OKX may delist the contract in advance. The specific delivery date will be notified separately in the form of an announcement. After the delivery time is determined, it will be displayed in the delivery date on the trading page.

3) For API users: The expTime field of the trading product (instruments) related interface returns the delivery date. The delivery date can be changed. API users should pay attention to the changes of expTime through the push interface or the scheduled query interface.

Second, leverage multiples. The leverage currently supported by OKX pre-market trading is 0.01 ~ 2 times, that is, the maximum is 2 times.

Third, the gradient gear position limit rules. The maximum position that a user can open is the maximum position corresponding to the leverage multiple selected by the user in the gradient gear table. The maintenance margin amount of the position is equal to the maintenance margin rate (MMR) of the gear corresponding to the user's position size in the gradient gear table multiplied by the user's position size.

Note that the unit of the maximum position that can be opened in the above gradient gear is USD, which needs to be converted into a specific number of contracts based on the currency price and contract face value:

Number of contracts = USD value / coin price / contract face value / contract multiplier (For specific number of contracts, please refer to the listing announcement)

Fourth, position limit rules. For pre-market contracts, the position size that users can open must meet the gradient position limit rules while also meeting the user position limit. For users of U-standard contract special market makers (DMM), the position limit is 100,000USD; for users of non-U-standard contract special market makers (DMM), the position limit is 10,000.

Two-sidedness: highlights and risks

Users can meet various different needs through OKX pre-market trading. For example, you can participate in transactions before the token is officially launched, preemptively arrange transactions, and capture market opportunities. Understanding the expected value of tokens before the official launch, participating in the activity and market reaction of pre-market trading can enhance the community's confidence in the token project, verify market demand and project potential through actual trading data, and increase price discovery opportunities and trading transparency.

Another example is to lock the price before the token is officially launched, and use delivery contract transactions to hedge the risk of price fluctuations, thereby avoiding the uncertainty brought by market fluctuations. And make more trading strategy choices, flexibly adjust the trading portfolio according to market conditions, etc. In short, through OKX pre-market trading, users can make trading decisions more actively and flexibly in the cryptocurrency market, enjoy more market opportunities and higher trading efficiency.

Although OKX continues to work hard to provide you with a better trading experience, trading pre-market contracts is high-risk, because the pre-market market is more prone to reduced liquidity and higher price volatility, and users face a greater risk of forced liquidation. Not all currencies traded in pre-market contracts will eventually be listed on OKX.

Currently, OKX reserves the right to adjust the listing, extend or terminate the contract, and the contract settlement date at its sole discretion.

It should be noted that pre-market contracts have a fixed expiration date, which is linked to the listing of the relevant underlying token and is settled only in USDT at expiration, so users are not trading the underlying token and should not expect to receive the underlying token when the contract expires. In addition, since the transaction is conducted before the listing of the relevant currency, there is no clearly identifiable price source for the underlying token, so the price of the contract may be different from the price of the underlying token at and after listing. OKX may suspend or terminate such pre-market contract trading at any time at its sole discretion.

Tutorial

How to use OKX pre-market trading?

1) Open the OKX App, click "Trading", and select "Pre-market Trading". Or click "More" in the upper left corner and select "Pre-market Trading".

2) Here we take ABCD as an example. After clicking "Go to Trade", click "Start Pre-Market Trading" to enter the currency trading interface

3) Pre-market trading is limited to position-by-position mode. You can click on the leverage multiple to modify it freely, and the maximum is 2X; the other operation procedures are the same as most trading procedures. You can set the order mode, price, cost and other parameters according to your personal preferences to open long or short positions

Tool Innovation

From the industry level, OKX Pre-market trading demonstrates its strong technological innovation and ability to respond to user needs, bringing more trading models and tools to the cryptocurrency market, attracting more users and liquidity, and helping the market discover and determine the price of tokens in advance. This price discovery mechanism helps to form a market consensus before the token is officially launched, making the market price more transparent and stable, and promoting the progress of the industry.

From the user level, it is possible to hedge the risk of price fluctuations before the token is officially released, and avoid the possible price fluctuation risks after the launch, so as to achieve more effective risk management. Or with the opportunity to participate in new projects in advance, it is possible to layout and participate in new projects earlier, breaking the restrictions.

From the project level, OKX pre-market trading provides an additional liquidity channel for new tokens. Through delivery contracts, traders can buy and sell tokens before they are launched, increasing the activity and liquidity of the market. For new projects, this can gain market attention and financial support before the official trading. In addition, new token projects can demonstrate their market demand and user interest before they are officially launched, which not only enhances the confidence of the project party, but also enhances the trust of potential users and the community, which helps the project succeed after it is launched.

However, any tool has two sides, and OKX pre-market trading is no exception. While providing opportunities, it also brings risks. Users need to conduct a comprehensive assessment before participating and cannot be blind. The new coin market is like a bright star in the world of cryptocurrency, shining with infinite possibilities. OKX launched the pre-market trading function to better convey this possibility.

Disclaimer

This article is for reference only. This article only represents the author's views and does not represent the position of OKX. This article is not intended to provide (i) investment advice or investment recommendations; (ii) an offer or solicitation to buy, sell or hold digital assets; (iii) financial, accounting, legal or tax advice. We do not guarantee the accuracy, completeness or usefulness of such information. Holding digital assets (including stablecoins and NFTs) involves high risks and may fluctuate significantly. You should carefully consider whether trading or holding digital assets is suitable for you based on your financial situation. Please consult your legal/tax/investment professionals for your specific situation. Please be responsible for understanding and complying with local applicable laws and regulations.