Pre-Market Trading FAQ
1. What Is Pre-Market Trading?
Pre-market trading is an over-the-counter (OTC) service provided by MEXC. It allows traders to buy and sell new tokens before they are officially listed on the exchange.
In pre-market trading, buyers and sellers can set their own prices and match orders directly, giving users the flexibility to trade at their preferred prices. By participating in MEXC pre-market trading, users can gain early market exposure ahead of a token's public listing.
To ensure a smooth experience, users are advised to familiarize themselves with the trading process and requirements in advance.
2. What Are the Benefits of Pre-Market Trading?
Pre-market trading allows investors to access new tokens before official market launch, offering the opportunity to secure popular tokens under potentially more favorable conditions. Compared with trading after listing, this can provide an early positioning advantage based on market expectations.
3. How Does Settlement Work?
For Sellers:
During the settlement period, sellers must ensure their Spot account holds a sufficient amount of tokens to fulfill the delivery obligation. Once settlement begins, the tokens will be securely transferred to the buyer's account to complete delivery.
For Buyers:
After an order is matched, buyers only need to wait for the settlement date.
- If the seller completes delivery, the buyer will receive the corresponding amount of tokens.
- If the seller fails to deliver, the buyer will receive compensation from the seller's collateral.
Compensation is calculated as: Matched order percentage × seller's collateral amount
Please note: If a "sell low, buy high" scenario occurs and the buyer is the maker, the seller's collateral is still calculated based on the seller's order price × quantity × collateral rate. As a result, the compensation received by the buyer may be lower than the buyer's own collateral.
4. How to Trade as a Seller in MEXC Pre-Market
Create an Order: Select the token you want to sell and enter the quantity and price to place a sell order.
Order Matching: Wait for a counterparty to match your order. Once matched, prepare the required tokens before settlement.
Settlement: Ensure your Spot account holds enough tokens at settlement time. Failure to deliver will result in forfeiture of collateral.
5. How to Trade as a Buyer in MEXC Pre-Market
Create an Order: Select the token you want to buy and enter the quantity and price to place a buy order.
Order Matching: Once your order is matched, simply wait for the settlement date. If your order is matched as a taker and the counterparty's price is lower than your order price, part of your collateral will be unfrozen proportionally to the price difference.
Settlement:
- If settlement is successful, you will receive the tokens from the counterparty.
- If settlement fails, the platform will refund your order amount and provide compensation based on the seller's collateral.
Compensation is calculated as:
Matched order percentage × seller's collateral amount
Please note: In "sell low, buy high" cases where the buyer is the maker, the seller's collateral is calculated using the seller's order price × quantity × collateral rate. As a result, compensation may be lower than the buyer's own collateral.
6. How Are Trading Fees Calculated?
- Seller fees are calculated based on the collateral amount and the applicable fee rate.
- Buyer fees are calculated based on the order amount and the applicable fee rate.
Trading fees, if applicable, will follow the rules described above. Specific collateral rates and fee rates can be found in the token information section of the MEXC pre-market trading page.
7. Are Trading Fees Charged If Settlement Fails?
Yes. Trading fees are still charged. Fees are refunded only if the order is not matched or if the token listing is canceled.
8. Can Orders Be Canceled After Matching?
Fully matched orders cannot be canceled. Partially matched orders may be canceled for the unmatched portion.
9. How Is the Collateral Rate Determined?
Collateral rates are determined based on multiple factors, including token risk profile and market conditions. For specific collateral rates, please refer to the token details on the MEXC pre-market trading page.
10. What Are the Risks of Pre-Market Trading?
For sellers: Failure to deliver tokens in full and on time will result in loss of collateral.
For buyers: If the seller fails to deliver, the buyer will receive compensation but will not receive the tokens.
11. Does Pre-Market Trading Affect the Token's Listing Price on MEXC?
Pre-market prices are determined by buyer and seller behavior and may not reflect the token's official listing price. While pre-market prices may indicate market expectations, the actual listing price can be influenced by other factors and is not directly correlated.
12. What Happens If a Token Is Delayed or Canceled for Listing?
- If listing is delayed, matched orders remain valid and a new settlement time will be announced.
- If listing is canceled, matched orders will be fully refunded and unmatched orders will be canceled.
13. Why Was My Order Canceled or Terminated?
If either party engages in improper trading behavior or triggers platform risk controls, the system may take the following actions:
- If the order is not matched, it will be canceled.
- If the order has entered the settlement phase, it will be terminated.
If the token is still in the settlement phase, users may place a new order to trade with other participants.