What is Pre-Market Trading?
In the cryptocurrency investment space, early positioning in new assets has become a core strategy for generating alpha. As an innovative financial instrument on BitMart, the pre-listing trading mechanism—"Pre-Market Trading"—enables investors to gain exposure to assets before their official listing through the minting and secondary market circulation of PreTokens.
Core Logic of Pre-Market Trading
Pre-Market trading (Pre-Markets) is an innovative derivatives trading model that allows investors to establish early exposure to assets before their official spot market listing via structured products. Its essence lies in capitalizing on price discrepancies and liquidity gaps between pre-listing and post-listing phases.
- Users can mint PreTokens (pre-listing trading certificates) by staking stablecoins (e.g., USDT).
- These PreTokens can then be freely traded in a dedicated secondary market.
How Pre-Market Trading Works
- Minting
Users stake USDT to mint PreTokens, with the minting amount determined by the minting ratio.
- Trading
PreTokens can be bought/sold in the pre-market trading pool, allowing price discovery before the asset’s official listing.
- Settlement
For minters: Before the asset’s official launch, minters must deposit the actual tokens to complete settlement and redeem their staked USDT.
- For traders: If settlement fails (e.g., minter defaults), the staked USDT is forfeited and distributed to PreToken holders proportionally.
- Fairness mechanism: The system allocates both the actual tokens and forfeited collateral based on a snapshot of users’ PreToken holdings.
Pre-Market Trading Schedule Rules
Pre-Market Trading Guide
Pre-Market Trading Strategies：
- Buy Low, Sell High for Early Profits Users can purchase PreTokens at lower prices in the pre-market spot trading and sell them after prices rise to profit in USDT.
Example A: Buy 1,000 CATI PreTokens at 0.45 USDT each and sell at 0.65 USDT. Profit calculation: (0.65 - 0.45) × 1,000 = 200 USDT.
- Hold for Settlement Purchase and hold PreTokens until market close to receive both the actual tokens and collateral distribution during settlement.
Example B: Buy 1,000 CATI PreTokens at 0.45 USDT and hold until snapshot. If final delivery is 921,313 CATI with remaining collateral of 475,675 USDT (total minted: 1,439,552): Tokens received = (1,000/1,439,552) × 921,313 Collateral distribution = (1,000/1,439,552) × 475,675
- Short Selling Strategy (With Early Unstaking) Mint and sell PreTokens at high prices, then repurchase at lower prices to unstake and profit from the spread.
Example C:
- Leveraged Shorting (With Recursive Unstaking) Amplify profits through recursive minting/selling at highs, then repurchasing at lows to unstake (up to 75% efficiency).
Example D: At 0.008 USDT price:
- Delivery Arbitrage Profit from price differences between pre-market and actual token launch.
Example E:
Key Features:
• All examples assume successful execution with no failed deliveries
• Unstaking incurs 2% fee
• Settlement calculations are proportional to holdings at snapshot
• Prices used are illustrative examples only
Additional Support
If you have further questions, please contact BitMart Customer Support or refer to the Pre-Market Trading Announcements for assistance.
Disclaimer
This document is for informational purposes only and does not constitute investment advice. Before participating, carefully review the Pre-Market Trading Rules and conduct your own risk assessment.
