Pre-Market Trading FAQ
Pre-Market Trading FAQ
1. What is the Pre-Market on KuCoin?
The Pre-Market is a unique platform on KuCoin that allows users to trade tokens before they're officially listed. It's like getting early access to new token listings.
2. How to trade in a Pre-Market on KuCoin?
● Locate the token you're interested in.
● Place your order by inputting the quantity and price, then confirm.
● Ensure timely delivery of the order within the agreed-upon timeframe.
2.1 How do I Buy as a Maker?
● Click “Create Order”, and place a buy order by entering the quantity and price. After paying the collateral, confirm your order.
● Wait for a seller to match your order.
● If a seller takes the order, wait until the token is listed on KuCoin.
● Once the seller delivers, you'll receive the token. If the seller fails to deliver, you'll get the compensation and the collateral back.
2.2 How do I Buy as a Taker?
● Locate an existing order that matches what you're looking for.
● Accept the sell order, double-check the quantity and price, secure the collateral, and confirm.
● Wait until the token is listed on KuCoin.
● After the seller's delivery within the agreed timeframe, you'll receive the token. If the seller fails to deliver, you'll get the compensation and the collateral back.
2.3 How do I Sell as a Maker?
● Click “Create Order”, and place a sell order by entering the quantity and price. After paying the collateral, confirm your order.
● Wait for a buyer to match your order. If a buyer takes the order, wait until the token is listed on KuCoin.
● Ensure timely delivery to get the buyer's deposit. Failure to deliver means you lose your collateral.
2.4 How do I Sell as a Taker?
● Locate an existing order that matches what you're looking for.
● Accept the buy order, double-check the quantity and price, secure the collateral, and confirm.
● Wait until the token is listed on KuCoin.
● Deliver on time to receive the buyer's deposit. Otherwise, you'll lose your collateral.
3. How to complete the delivery
Normally, there are two ways of delivery.
3.1 Deposit Tokens post listing within the stipulated time
○ Ensure you have the correct Token Ticker and deposit Address.
○ Transfer enough tokens to the spot trading account and wait for delivery time.
3.2 Purchase enough tokens in the spot market, transfer enough tokens to the spot trading account, and wait for delivery time.
Note: Ensure tokens are stored in your spot trading account. Tokens in any other account (e.g., a funding account) won't be recognized for delivery and you may lose all your collateral.
4. How are prices determined in the Pre-Market?
Prices in the Pre-Market are determined by the buyers and sellers. They can set their quotes, which may differ from the prices once the token is officially listed.
5. Can I cancel an order once I've confirmed it?
Unfilled orders can be canceled without incurring fees. However, filled orders remain in place until the token's official listing or if the listing is canceled.
6. What happens if I can't complete my order within the agreed time?
Not delivering on time can result in the loss of collateral. Always ensure you can meet the trade's conditions.
7. If my order is filled as a buyer, does it mean I will receive the token immediately?
The token delivery timeframe can be found on the Pre-Market landing page. Please be patient and wait for the seller to deliver within the stipulated time.
8. How is liquidity ensured in the Pre-Market?
Liquidity is primarily ensured by the traders themselves. As it's an over-the-counter (OTC) market, buyers and sellers set their quotes and lock in prices and liquidity in advance.
9. What if the token doesn't get listed or is delayed?
If a token's listing is delayed or canceled, the Pre-Market will adjust its operations accordingly. Please refer to our guidelines on "New token Delayed or Cancelled" for detailed procedures.
10. How are collateral rates determined?
Collateral rates are set to ensure the security of trades in the Pre-Market. These might be based on a variety of factors, including the token's perceived risk and volatility.
11. Is Pre-Market trading riskier than regular trading?
Like all trading, there are potential risks. However, the Pre-Market has its own set of risks and rewards. Ensure you understand the terms, especially regarding delivery times and collateral, before you begin trading.
12. Do Pre-Market trades affect the token's initial listing price on KuCoin?
While Pre-Market trades reflect the market expectations, the official listing price might be influenced by a broader set of factors. It's important to note that both Pre-Market and listing prices are determined by the market. There might not necessarily be a direct correlation between the two prices.
13. How does the Pre-Market differ from KuCoin futures?
At present, the Pre-Market on KuCoin is primarily designed for over-the-counter (OTC) trading of tokens before they are officially listed. This OTC nature means that trading is not continuous, unlike in futures. Also, unlike futures, where you're buying a contract based on future prices, in the Pre-Market you're directly trading the tokens themselves and delivering post-listing.
14. How are Pre-Market fees calculated, and are they different from regular KuCoin fees?
Pre-Market fees are typically 2.5% of the total traded amount, but they can vary based on the token. These fees are distinct from KuCoin's main market fees.
15. Can I use leverage in the Pre-Market?
Currently, the Pre-Market does not support leveraged trading. You'll need to have the full amount of funds or tokens you wish to trade.
16. Are there any country-specific restrictions for Pre-Market trading?
Pre-Market trading follows the same country-specific restrictions as regular KuCoin trading. Always ensure you complete the Identity Verification (KYC) and that you're compliant with your local regulations.
17. What happens if there's a system outage during the Pre-Market trading?
KuCoin has a robust infrastructure in place to handle such scenarios. In the rare event of an outage, the platform will provide guidance on how affected trades will be managed.
18. Are Pre-Market trades anonymous?
Like other trades on KuCoin, Pre-Market trades are designed to protect users' privacy. Other users won't see your personal details, just the order details.