FAQ—Pre-Market Trading
#Basic
#Spot
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1. What is Pre-Market Trading?
Pre-market trading is an Over-the-Counter (OTC) service provided by MEXC. It gives traders the opportunity to buy and sell new tokens before they are officially listed on the platform. Buyers and sellers set their own prices and match trades accordingly. This gives traders the chance to secure tokens at desired prices and gain an edge before these tokens hit the open market. Always familiarize yourself with the trading process and requirements to maximize your trading success.
2. How does Pre-Market Trading work?
1）In MEXC's Pre-Market Trading, users can buy and sell tokens before their official listing.
2）Traders can choose to act as a Maker, creating orders with preset prices, or a Taker, completing trades by accepting existing pre-market orders on the platform.
3）Both buyers and sellers are required to provide collateral to ensure timely settlement.Upon successful delivery, seller's collateral will be returned after settlement, while buyer's collateral will be applied as the payment amount during settlement.
4）Currently, pre-market trading is conducted under the MEXC Spot account.
3. How to participate in Pre-Market Trading?
3.1 As a Buyer
Create an Order: Use the [Create Order] function to set the quantity of tokens you want to buy at your desired price, then post the order to the order book.
Select a Sell Order: Browse the order book to find a matching sell order and purchase the token at the seller's listed price.
Once your order is filled, simply wait for settlement to complete.
3.2 As a Seller
Create an Order: Use the [Create Order] function to set your desired selling price and post your order in the order book.
Select Buy Orders: Browse the order book to find a matching buy order and sell your tokens at the buyer's quoted price.
Once your order is filled, simply wait for settlement to complete.
If you would like to learn more details about the pre-market trading process, you can refer to the guides: "Pre-Market Trading Guide" and "What is MEXC Pre-Market Trading?" for further information.
4. How to Complete Settlement?
4.1 As a Buyer
When placing an order, the buyer's collateral and fees will be temporarily frozen. Once the order is filled, the buyer simply needs to wait for the settlement date.
If the seller delivers the order, the buyer will receive the corresponding amount of tokens, and the collateral and transaction fees will be deducted at settlement.
If the seller fails to deliver the order, the buyer's collateral will be unfrozen, and the buyer will receive the seller's collateral as compensation. In addition, the transaction fee will be deducted from the buyer's collateral.
4.2 As a Seller
When a seller places an order, collateral and transaction fees are temporarily frozen. During the settlement period, it is essential for the seller to ensure that their Spot account holds sufficient tokens to fulfill the delivery obligation.
At settlement, if the seller delivers the tokens successfully, these tokens will be safely transferred to the buyer's Spot account, and the seller's Spot account will receive payment from the buyer. At the same time, seller's collateral will be unfrozen, and the transaction fee will be deducted.
If token delivery fails, the seller's collateral will be forfeited. A portion of the collateral will be collected by the platform as a liquidation fee, and the remainder will be given to the counterparty as compensation. Currently, MEXC does not charge any transaction fees, and all collateral will be compensated to the buyer.
It is important to note that transaction fees still apply in the event of a failed delivery. MEXC will only refund transaction fees if the order is incomplete or if the project listing is canceled.
5. Can Pre-Market trades be canceled?
Unfilled orders can be canceled at any time. Once an order is filled, it cannot be canceled, and you will need to wait for the settlement to be completed.
If the token listing is delayed, filled orders will still remain valid, and the new settlement time will be announced separately.
If the token listing is canceled, all filled orders will be refunded in full, and unfilled orders will be canceled.
6. What isSettlement Time?
The settlement time is the specified time when the seller transfers the full amount of tokens agreed upon in the pre-market trade to the buyer. The specific settlement time can be found in the information section on the Pre-Market Trading page.
7. What fees are associated with pre-market trading?
7.1 Fee Structure
Transaction Fees: Generally, the transaction fee is charged as a specific percentage of the total transaction amount. Currently, MEXC has zero pre-market transaction fees.
Other Fees: If the seller fails to fulfill the delivery obligation within the specified time, MEXC will charge a fee from the seller's collateral, with the remaining portion compensated to the buyer. Currently, MEXC charges no fees, and all collateral is used as compensation to the buyer.
Please note that no fees will be charged for unfilled orders. Additionally, pre-market transaction fees are different from other trading markets on MEXC. For specific fees, please refer to the token details on the MEXC pre-market trading page.
7.2 Transaction Fees
The buyer's transaction fee is calculated based on the order amount and the fee rate, while the seller's transaction fee is determined by the collateral amount and the fee rate.
Fee Rate: This is a specified percentage of the transaction value, and it varies depending on the token being traded. For the specific fee rate of a token, please refer to the corresponding token details on the MEXC pre-market trading page.
7.3 Collateral Rate
The collateral rate represents the portion of the order's total value that must be pledged as collateral. Failure to complete the delivery within the specified time may result in the forfeiture of collateral.
The collateral rate is determined based on multiple factors, including the inherent risk of the token and market conditions. For the collateral rate of a specific token, please refer to the corresponding token details on the MEXC pre-market trading page.
7.4 Pre-Market Trading Frozen Amount
Buyer's Frozen Amount = Order Value
Seller's Frozen Amount = Order Value × Collateral Rate (Z%)
For example, if Z% = 100%, the frozen amount for a 1,000 USDT pre-market trade would be: 1,000 USDT × 100% = 1,000 USDT.
7.5 Overdue Settlement Fees
In general, if the seller fails to deliver within the specified time, the platform will charge a portion of the seller’s collateral as a fee, and the remaining portion will be given to the buyer as compensation. Currently, MEXC does not charge a fee, and the entire collateral is provided as compensation to the buyer.
8. Partial Filling
Currently, Pre-Market Trading does not support partial filling of orders.
9. Will Pre-Market Trading affect the listing price on MEXC?
The price in MEXC's pre-market trading is determined by the market behavior of both buyers and sellers. This price may not accurately reflect the actual listing price of the new token upon launch. While pre-market trading can indicate market price expectations, the actual listing price of the token may be influenced by other factors, and there is no direct correlation between the two.
10. What are the risks of Pre-Market Trading?
For sellers: Failing to deliver the full amount of tokens on time will result in the forfeiture of the collateral amount of the order.
For buyers: If the seller does not deliver the tokens in full or on time, the buyer will receive compensation, but they will not receive the corresponding number of tokens specified in the order.