Bitcoin and Ethereum dominated the early days of the cryptocurrency market. However, with the rapid iteration and increasing maturity of the industry, more and more emerging projects have begun to emerge. The new cryptocurrency market is an important part of the cryptocurrency field and plays a crucial role in the innovation and development of the industry.
The changes in the proportion of the total market value of the new cryptocurrency market reflect the progress of innovative technologies and the expansion of application scenarios, promoting the evolution of the cryptocurrency industry landscape. Its significant market penetration potential has enhanced the global awareness and acceptance of cryptocurrencies. For example, emerging applications such as DeFi and NFT have met users' needs for financial innovation and digital art, and in turn, have promoted the further development of the new cryptocurrency market. As of July 2024, the proportion of the total market value of the new cryptocurrency market accounted for approximately 30%, reflecting its important position in the overall market.
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In response to the enthusiasm of active users for participating in the new cryptocurrency market, OKX has officially launched the pre-market trading function, allowing users to conduct delivery contract trading of tokens that have not yet been listed. The aim is to provide users with a safe and reliable platform to participate in the price discovery of new tokens and lead the innovation of trading tools in the industry. Users can upgrade the OKX APP to version v6.7* and above to experience it immediately.
About Pre-market TradingThe delivery contracts of OKX's pre-market trading are essentially USDT-based delivery contracts, which are usually settled before the new cryptocurrency is listed on the spot trading market. Through OKX's pre-market trading, users can trade before the cryptocurrency is officially listed, and take the lead in buying and selling the delivery contracts of digital assets listed on the platform, while enjoying a 2x leverage.
Generally speaking, during the pre-market trading stage, users can obtain profits from price fluctuations by going long or short; during the contract settlement stage, the OKX pre-market delivery contracts will be settled at a specific price on the settlement date; however, during the spot trading listing stage, the contracts settled in the OKX pre-market trading do not guarantee that the cryptocurrency will eventually be listed in spot trading.
From the perspective of industry development, conducting delivery contract trading of tokens that have not yet been listed not only provides an effective mechanism for price discovery and liquidity improvement, but also provides users and project parties with better risk management tools and market participation opportunities.
It is worth noting that the product mechanisms of the OKX pre-market trading market are different from those of the standard delivery market. 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 this index price is also used to determine the settlement price of the contract.
Interpretation of Core ElementsA question that users are more concerned about is whether OKX's pre-market trading will affect the price of the subsequent cryptocurrency when it is listed on OKX. In fact, the price in the OKX pre-market trading market is determined by the market behavior of buyers and sellers, and this price may not accurately reflect the actual issuance price of the new cryptocurrency. Although pre-market trading can reflect market expectations, the listing price of the cryptocurrency itself may be affected by other different factors, and there is no direct correlation between the two.
In addition, through the following table, the core elements of the delivery contracts of OKX's pre-market trading have been extracted. Next, several of them will be interpreted, such as the settlement time, price, etc.
OKX Pre-market Trading: The First Choice of Trading Tools for New Cryptocurrency Contracts, Leading in Cutting-edge Innovation
First, the settlement time. 1) If the new cryptocurrency is normally issued and it is determined to be listed on the OKX spot trading market, the delivery contracts of the pre-market trading will be settled before the cryptocurrency is listed on the spot market. The specific settlement date will be notified separately in the form of an announcement, and after the settlement time is determined, it will be displayed in the settlement date on the trading page.
If the project party cancels the issuance of the new cryptocurrency, or does not announce the cryptocurrency issuance plan within half a year, or if the platform decides in advance that it will not be listed on the OKX spot trading market due to other risk control issues, OKX may delist the contract in advance. The specific settlement date will be notified separately in the form of an announcement, and after the settlement time is determined, it will be displayed in the settlement date on the trading page.
For API users: The expTime field of the relevant interface of the trading product (instruments) returns the settlement date. The settlement date can be changed, and API users should pay attention to the changes of expTime through the push interface or regular query interface.
Second, the leverage multiple. The current leverage supported by OKX's pre-market trading is 0.01 to 2 times, with a maximum of 2 times.
Third, the gradient position limit rule. The maximum open position volume of a user is the maximum position volume corresponding to the leverage multiple selected by the user in the gradient position table. The maintenance margin amount of a position is equal to the maintenance margin rate (MMR) of the corresponding position level in the gradient position table multiplied by the user's position size.
OKX Pre-market Trading: The First Choice of Trading Tools for New Cryptocurrency Contracts, Leading in Cutting-edge Innovation
Note that the unit of the maximum open position volume in the above gradient position is USD, and it needs to be converted into the specific number of contracts according to the cryptocurrency price and contract face value:
Number of contracts = USD value / Cryptocurrency price / Contract face value / Contract multiplier (Refer to the listing announcement for the specific number of contracts)
Fourth, the position limit rule. For the contracts in pre-market trading, the size of the user's open position needs to meet both the gradient position limit rule and the user position limit. For DMM (Designated Market Maker) users of U 本位 contracts, the position limit is 100,000 USD; for non-DMM users of U 本位 contracts, the position limit is 10,000 USD.
OKX Pre-market Trading: The First Choice of Trading Tools for New Cryptocurrency Contracts, Leading in Cutting-edge Innovation
Dual Nature: Highlights and RisksThrough OKX's pre-market trading, users can meet various needs from different dimensions. For example, they can participate in trading before the token is officially listed, take the lead in laying out their trades, and capture market opportunities. Understand the value expectations of the token before it is officially listed. The activity and market response of participating in pre-market trading can enhance the community's confidence in the token project. Verify the market demand and project potential through actual trading data, and increase the opportunities for price discovery and trading transparency.
For another example, lock in the price before the token is officially listed, and use delivery contract trading to hedge against the risk of price fluctuations, thereby avoiding the uncertainties brought about by market fluctuations. And make more choices of trading strategies, flexibly adjust the trading portfolio according to market conditions, and so on. In short, through OKX's pre-market trading, users can make more proactive and flexible trading decisions in the cryptocurrency market, and enjoy more market opportunities and higher trading efficiency.
Although OKX has been continuously striving to provide you with a better trading experience, trading pre-market contracts is highly risky because the pre-market is more prone to reduced liquidity and higher price volatility, and users face a greater risk of liquidation. Not all the cryptocurrencies traded in pre-market contracts will eventually be listed on OKX.
Currently, OKX reserves the right to decide on its own to adjust the listing, extend or terminate the contract, and the contract settlement date.
It should be noted that pre-market contracts have a fixed expiration date, which is linked to the listing of the relevant underlying token. They are only settled in USDT upon expiration. Therefore, users are not trading the underlying token and should not expect to receive the underlying token when the contract expires. In addition, since the trading is carried out before the relevant cryptocurrency is listed, there is no clearly identifiable price source for the underlying token. Therefore, the price of the contract may be different from the price of the underlying token when it is listed and after it is listed. OKX may, at its sole discretion, suspend or terminate such pre-market contract trading at any time.
Usage TutorialHow to use OKX's pre-market trading?
OKX Pre-market Trading: The First Choice of Trading Tools for New Cryptocurrency Contracts, Leading in Cutting-edge Innovation
OKX Pre-market Trading: The First Choice of Trading Tools for New Cryptocurrency Contracts, Leading in Cutting-edge Innovation
OKX Pre-market Trading: The First Choice of Trading Tools for New Cryptocurrency Contracts, Leading in Cutting-edge Innovation
Tool InnovationFrom an industry perspective, OKX's pre-market trading demonstrates its strong technological innovation and the ability to respond to user needs. It brings more trading modes and tools to the cryptocurrency market, which can attract more users and liquidity, and can help 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 listed, making the market price more transparent and stable, and promoting the progress of the industry.
From a user perspective, it is possible to hedge against the risk of price fluctuations before the token is officially released, and avoid the possible price fluctuation risks after listing, so as to achieve more effective risk management. Or have the opportunity to participate in new projects in advance, and be able to lay out and participate in new projects earlier, breaking the limitations.
From a project perspective, OKX's pre-market trading provides an additional liquidity channel for new tokens. Through delivery contracts, traders can buy and sell before the token is listed, increasing market activity and liquidity. 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 listed. This not only enhances the confidence of the project parties but also improves the trust of potential users and the community, contributing to the success of the project after listing.
However, any tool has a dual nature, and OKX's pre-market trading is no exception. While providing opportunities, it also brings risks. Users need to conduct a comprehensive assessment before participating and should not be blind. The new cryptocurrency market is like a shining star in the world of cryptocurrencies, shining with infinite possibilities. OKX's launch of the pre-market trading function better conveys 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 does not intend 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. For your specific situation, please consult your legal/tax/investment professionals. Please be responsible for understanding and complying with the relevant local laws and regulations on your own.
It should be noted that in China, virtual currency-related business activities are clearly defined as illegal financial activities. Virtual currency trading disrupts the economic and financial order and may bring financial risks. Please abide by relevant laws, regulations and policies.
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