Have you tried Pre-Market Trading?

[R1dwanRz]

Hey guys, I discovered this product called Pre-Market Trading yesterday when an exchange announced MERL token pre market trading, so far I know about how OTC works, but Pre-market trading is a new innovation that I have not tried yet.

From what I can understand, people who buy can lock in price, but since it's kind of like a pre-order. They won't get the coin right away, but they already lock in the price. The best part is you don't really have to own crypto during execution of pre-market trading, but you gotta have it once it's delivery time. On the other hand, While sellers might not own the coins yet, they need to guarantee they can deliver them by the designated time. To ensure this, platforms often require sellers to put up a deposit (margin). If they fail to deliver, the trade is canceled, and the buyer is compensated using the seller's deposit.

I wanted to see if any of you have experience with Pre-Market Trading. What are your thoughts?

[1714505651]

1714505651

[1714505651]

1714505651

[dzungmobile]

Hey guys, I discovered this product called Pre-Market Trading yesterday when an exchange announced MERL token pre market trading, so far I know about how OTC works, but Pre-market trading is a new innovation that I have not tried yet

Trading is risky already but Pre-market trading is more risky.

You are very greedy and speculative with Pre-market Trading as a lot of things can happen with a project. It can die before a TGE or any exchange listing and if you buy points from Pre-market trading, you lose money.

I prefer safety of my capital than being too speculative and greedy with Pre-market trading.

[Aanuoluwatofunmi]

Hey guys, I discovered this product called Pre-Market Trading yesterday when an exchange announced MERL token pre market trading, so far I know about how OTC works, but Pre-market trading is a new innovation that I have not tried yet.

Am also seeing this kind of feature for the first time, but i expect it to be something similar to that of the presale offers on ICOs or that of the market limit orders as well as something related to future trading, if you want to give a try on such, i will advice that you wait first and make research on it, then give a try using little amount in case of any uncertainties, there are lots of trading categories and types we can choose for the best we have idea on how to use, instead of trying or taking risk with the one we are not used to.

[Oneandpure]

Regarding some information I know, pre market trading is for altcoin has an airdrop or receiving from testnet and the seller sell based on their price speculation with buyer agree will buy in this price. Have good rule with escrow and OTC market pre order for some coins but I doubt when listing will raise up above pre market listing price or not? I checked some coins can't reach most higher price based on pre listing but if you have much money and get more longer waiting for you can try to buy on pre market between buyer and seller will credit their coins or fund after coins listing on market.

Can't predictable how longer time need if buy coins on pre market with escrow OTC system, you can't cancel the order if reach agreement and your fund have been in escrow wallet with pre market listing system.

[Husires]

It is not trading, as trading is buying and selling after the token has a value, but it is an ICO Initial coin offering, where the project is financed in the initial stages by selling tokens at less than their expected value when listed. If the currency is listed and its price increases, profits will be achieved, and if it is not listed or it is listed at a lower value of its value, you make losses.

[AbuBhakar]

I wanted to see if any of you have experience with Pre-Market Trading. What are your thoughts?

I have an experience on using pre market trade but in a form of IOU tokens which users purchased token in IOU form that is not real token. Those IOU tokens will be converted to the real token once it was minted and distributed in the public.

The current pre market trading is kinda sketchy and risky at the same time because you will need to deposit as collateral for your orders in able to backed it. Buying on IOU market is more simple and safe than the current model of pre-market which is complicated.

[crwth]

MERL? Is this Merlin or something? With the Merlin chain? I have seen and watched videos about this and I think it's something worth trying to check out but I just haven't had the time to really do some more research about this.

[decodx]

I haven't personally dabbled in pre-market trading before.  Your explanation makes it sound interesting though, especially the part about locking in a price without needing the actual crypto yet.  That sounds useful.  On the other hand, that detail about not owning the coins they're selling gives me some hesitation.  It seems risky compared to regular trading where the assets are in hand. 

Have you done any research on the specific exchange offering this MERL token pre-market trading? Knowing their reputation and how they handle these deposits/margins would be key for me before jumping in.

[tvplus006]

...I wanted to see if any of you have experience with Pre-Market Trading. What are your thoughts?

You won't be able to know exactly what the price of the coin will be on the listing, but if you are satisfied with the current price on the Pre-Market, then you can sell your coins that you haven't received yet. It is possible that you will later regret that you sold the coins too cheaply, or maybe you will be happy that you managed to sell the coins at such a good price.

[Davidvictorson]

Am also seeing this kind of feature for the first time, but i expect it to be something similar to that of the presale offers on ICOs or that of the market limit orders as well as something related to future trading, if you want to give a try on such, i will advice that you wait first and make research on it, then give a try using little amount in case of any uncertainties, there are lots of trading categories and types we can choose for the best we have idea on how to use, instead of trying or taking risk with the one we are not used to.

It is happening now. Many of my crypto friends are purchasing tokens in the pre-market phase hoping to catch its potential profitability of buying tokens early before they get listed on exchanges like Binance and Bybit. They will usually tell me about their previous successful purchases of these tokens. As for me I do not engage in it as there are too many scams. Also it is very risky due to the potential for the premarket strength to vanish once listed on exchanges like Binance and Bybit and regular trading begins.

[Dr.Bitcoin_Strange]

This sounds strange to me, perhaps because it's the first time I am getting to hear that there is such a type of trading pattern. From how the OP has described this kind of trading, it already seems very risky, not just like normal spot trading. In pre-market trading, "the investors don't need to own the coin but can place a selling price that they will want to deliver to buyers, while the seller would have to deposit some money that is either equivalent to whatever amount they want to sell, but after that trade doesn't execute, the buyer will be compensated with the amount he or she deposited." Why? I don't like this idea because what if, at the end, the coin doesn't get listed? Or the price goes far beyond what you have speculated.

[FatFork]

Trading's already risky business, but pre-market trading kicks that up a notch.  You're buying something without knowing where the price will land once the coin officially lists.  Gotta do your homework if you want a shot to come out ahead. 

Look into project valuation methods used in the crypto space.  Research the project behind the MERL token, why theyre building it, who's doing the work and where they wanna go.  Is this a solid play that can deliver, or all hype? And take a look at similar projects - how'd their coins trade pre-market and when they listed? That'll give you a taste of the rollercoaster you might be boarding. 

If you still decide to ante up pre-market, only risk what you can lose without losing sleep.  Especially with a new coin thats still gotta prove itself.

[electronicash]

looks like this will trigger a lot of projects going to do pre-market trading. i'm not understanding it completely lol but its always the same early investors still. say you bought and because you didn't have the tokens yet you can't sell either.  what would the team do to the funds, use them to pump?  and what guarantees the token will be sent to these early investors in time?  this could still be another method to scam.

[boyptc]

I haven't tried it and probably will never. Just like in housing, there are pre-sale/market but you're paying for your own construction.

With this, the exchange or the project will be able to get your money but you are not guaranteed that you'll get a decent ROI.

You might get into losing with that capital that you're going to invest on them and that's why, it's riskier than the typical presale that the projects do because they can use your money for something else.

[tvplus006]

I haven't tried it and probably will never. Just like in housing, there are pre-sale/market but you're paying for your own construction.

With this, the exchange or the project will be able to get your money but you are not guaranteed that you'll get a decent ROI.

You might get into losing with that capital that you're going to invest on them and that's why, it's riskier than the typical presale that the projects do because they can use your money for something else.

If you use Bybit or KuCoin, everything will go smoothly, regardless of whether you are a seller or a buyer. This is much safer than using the OTC Market, since the fulfillment of their obligations by the parties is guaranteed by the exchange itself on the basis of the developed Pre-Market rules.

[BD Technical]

There is a lot of knowledge in the market that is available at a good price where you know that you have earned income if you sell it in the market or if you can sell it in the market if it is listed in the market, it is well available and the price is low again.  In many film markets this price is high and later when it is original, its price is reduced and it becomes a market place.  The current situation seems to be that you sell a little closer to the market which you think is better to sell pre-market because they don't fetch good prices after they happen.  As you think.  For example, a few days ago there was a total of coins in mining that you were able to sell at a good price in the free market.  Those who get it can sell it at a good price and hopefully get something out of it.

[boyptc]

I haven't tried it and probably will never. Just like in housing, there are pre-sale/market but you're paying for your own construction.

With this, the exchange or the project will be able to get your money but you are not guaranteed that you'll get a decent ROI.

You might get into losing with that capital that you're going to invest on them and that's why, it's riskier than the typical presale that the projects do because they can use your money for something else.

If you use Bybit or KuCoin, everything will go smoothly, regardless of whether you are a seller or a buyer. This is much safer than using the OTC Market, since the fulfillment of their obligations by the parties is guaranteed by the exchange itself on the basis of the developed Pre-Market rules.

Well, if it is about the usage of bybit, I have nothing bad to say about it because I have good experience on it.

As for kucoin, despite some issues about it, heard good things about it and about for the pre markets, before committing into it you have to check if it is for you.

And whichever you hear about these kind of markets, you should know what you are up to.

[Bureau]

Which exchange is offering pre market trading? I haven't come across one. Pre market trading will be only beneficial if the token has the hype in the market. Buying at your set price will give good returns after the token gets listed. But, it can be high risky as there have been instances in the past where hype was created falsely and as soon as the token is listed it gets dump.

[Iamcrypticguy]

Hey guys, I discovered this product called Pre-Market Trading yesterday when an exchange announced MERL token pre market trading, so far I know about how OTC works, but Pre-market trading is a new innovation that I have not tried yet.

Am also seeing this kind of feature for the first time, but i expect it to be something similar to that of the presale offers on ICOs or that of the market limit orders as well as something related to future trading, if you want to give a try on such, i will advice that you wait first and make research on it, then give a try using little amount in case of any uncertainties, there are lots of trading categories and types we can choose for the best we have idea on how to use, instead of trying or taking risk with the one we are not used to.

It's similar to OTC... I think it's a feature that allows early supporters of a project to get early entry. Also similar to P2P with some safety features. It's got it's advantages though. You can peruse this for clarity
https://www.bitget.com/academy/bitget-pre-market-introduction

[tvplus006]

Which exchange is offering pre market trading? I haven't come across one...

Two messages earlier, I wrote that there is Pre-Market Trading on the KuCoin exchange, and recently a similar thing has been opened on the Bybit exchange. I don't know which exchange you trade on, but I think Pre-Market Trading will also be available there soon.