What is Pre-Market OTC?
Gate.io pre-market OTC is an Over-the-Counter (OTC) trading service that allows investors to buy and sell new tokens before they officially get listed. Both buyers and sellers can place orders based on their expected prices and quantities, locking in their ideal token price and amount in advance.
What are the advantages of Pre-Market OTC?
Pre-market OTC provides investors with an opportunity to gain a market advantage before the official release of new tokens. Compared to post-launch trading, investors have the chance to acquire popular tokens on more favorable terms, potentially gaining a market edge.
How is delivery completed?
If you are a seller, you have to ensure that there's sufficient available balance of the traded token in the Unified Account or spot account during the delivery period. The tokens will be transferred to the buyer's account at delivery. Please wait patiently.
If you are a buyer, after a trade completes, you only need to wait for the delivery date to arrive. If the seller fulfills his/her delivery obligation, you will receive the tokens with the agreed amount; if the seller fails to fulfill the delivery obligation, the total amount you paid will be refunded and you will also receive an indemnity paid by the seller.
Note: The Unified Account/spot account assets occupied by spot open orders will be frozen. These frozen assets cannot be used for Pre-Market OTC delivery.
Is there a fee for failed delivery?
Yes. The fee is refunded only if the order is not filled or the token listing is canceled.
Can a fIlled order be canceled?
Filled orders cannot be canceled; please wait patiently for the delivery to be completed.
How is the LTV determined?
LTV takes into account various factors, including the riskiness of the token itself and the market conditions. Check the pre-market OTC page for specific token information.
Can the seller deliver to the buyer before the delivery time?
No, even if the seller prepares the full amount of tokens in advance in his/her account, delivery can only be made at the specified time.
Will the buyer immediately receive the tokens after placing an order?
Tokens will be delivered to the buyer's account after the delivery is completed and if the seller does not default.
What happens if I don't complete the trade within the specified time?
If the seller fails to fulfill the token delivery obligation before the end of the delivery time, he/she will lose the entire collateral amount.
What if the token is not listed or delayed?
If the token's listing is delayed, filled orders remain valid, and a new delivery time will be announced.
If the token's listing is canceled, filled orders will be fully refunded, and unfilled orders will be canceled.
Does the price of tokens in Pre-Market OTC affect the initial listing price?
The token's listing price is influenced by various factors. Pre-market OTC prices of tokens do not directly affect the listing price, but both reflect market expectations. Investors are advised to consider both aspects when making trading decisions.
How are trading fees determined?
The seller's trading fees consist of the collateral amount and the fee rate, while the buyer's trading fees are based on the order amount and the fee rate. For specific LTV and fee rates, you can check in the pre-market trading token information section.
What are the risks of Pre-Market OTC?
For sellers, failing to deliver the full amount of tokens on time will result in the loss of the entire collateral amount. For buyers, if the seller does not deliver the full amount of tokens or on time, the buyer will receive compensation, but will not receive the corresponding number of tokens.
How is liquidity ensured in Pre-Market OTC?
In Pre-Market OTC, liquidity is ensured based on the active trading behaviors of market participants. In this OTC mechanism, buyers and sellers agree on prices in advance, jointly promoting market price stability and the effective circulation of funds, thereby optimizing liquidity protection.
Is leveraged trading supported in Pre-Market OTC?
Currently, leveraged trading is not supported in Pre-Market OTC. Traders must pay the full order amount or provide full collateral assets.
Disclaimer:
- Please note that Pre-Market OTC trading could be subjected to multiple risks including a lack of liquidity, a wide bid-ask spread, and price volatility.
- In rare cases, your matched order could be canceled due to unforeseen factors (such as abnormal transactions, regulatory requirements, etc.). In this case, all funds will be returned to your account automatically to avoid any financial loss.
