Pre-Market Trading FAQ
1. What is Pre-Market on KuCoin?
The Pre-Market is an over-the-counter (OTC) trading platform for trading new tokens before their official release. Here, you can set your own price quotes and trade directly with others to lock in your desired prices and get early liquidity. Just make sure you have enough funds and can complete the trade within the agreed upon time frame.
2. How are prices set in the Pre-Market?
Prices are set by the traders themselves. You have the freedom to quote your price, which could be different from the eventual official listing price.
3. If my buy order is filled, does this mean I'll receive my tokens 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.
4. Can I cancel my order once I've confirmed it?
Yes, you can cancel any order that hasn't been filled without any fees. However, once your order is filled, it's locked in until the token is officially listed or unless the listing is canceled.
5. What if I fail to complete my order on time?
Failing to deliver on time could mean you lose the collateral you've pledged. It's crucial to ensure you can meet the conditions of the trade.
6. How is liquidity maintained in the Pre-Market?
Liquidity is primarily maintained by the traders themselves. Since it's an over-the-counter (OTC) market, buyers and sellers set quotes to lock in their prices and liquidity ahead of time.
7. What happens if the token's listing is delayed or canceled?
If there's a delayed listing or cancellation, the Pre-Market will adjust accordingly. Check our guidelines for "Delayed or Cancelled Token Listing" for more details.
8. How are collateral rates determined?
Collateral rates are based on a variety of factors, including the token's perceived risk and volatility. These rates are then set to secure your trades on the Pre-Market.
9. Is Pre-Market trading riskier than regular trading?
All forms of trading carry their own inherent risks, and the Pre-Market is no different. As Pre-Market trading has its unique set of risks and rewards, make sure you understand the conditions and their specifics, especially delivery times and collateral.
10. Do Pre-Market trades affect the token's initial listing price on KuCoin?
Pre-Market trades may show what traders expect, but the official listing price of a token once it hits the market is influenced by many other factors. While both Pre-Market and official listing prices are defined by market expectations, there isn't necessarily a direct link between the two.
11. How does the Pre-Market differ from KuCoin futures?
Pre-Market offers over-the-counter (OTC) trading of tokens before listing, which means your trades aren't continuous, unlike futures. Also, Pre-Market trading means the actual tokens are being traded and delivered post-listing, unlike futures, where you're buying a contract based on a token's future prices.
12. How are Pre-Market fees calculated, and are they different from regular KuCoin fees?
Pre-Market fees are typically 2.5% of the total trade amount, but this can vary by token. These fees are distinct from KuCoin's main market fees.
13. Can I use leverage in the Pre-Market?
No, leveraged trading isn't supported in the Pre-Market. You'll need the full amount of funds or tokens for trading.
14. Are there any country-specific restrictions for Pre-Market trading?
The same country-specific restrictions apply as with regular KuCoin trading. Make sure you've completed your Identity Verification (KYC), and that you are in compliance with local laws and regulations.
15. What 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, we'll guide you on how to manage any affected trades.
16. Are Pre-Market trades anonymous?
Like other trades on KuCoin, Pre-Market trades are designed to protect your privacy. While your trade and order details are visible, your personal information is not shared with other traders.