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Gaining early entry into the market is a strategy many traders pursue to gain an advantage in the fast-paced trading world. Bybit’s introduction of Pre-Market Perpetuals builds on the success of its Pre-Market Trading for Spot pairs, offering traders a unique opportunity to trade Derivatives contracts before these go public. In this article, we’ll explore how you can get started with Bybit Pre-Market Perpetuals.
Key Takeaways:
Bybit Pre-Market Perpetuals is an innovative trading product that enables traders to engage in Derivatives contracts prior to the tokens’ official public listings.
Explore our detailed guide to find out how to create a Pre-Market Perpetuals order.
Bybit Pre-Market Perpetuals is an innovative trading product that enables traders to engage in Derivatives contracts prior to the tokens’ official public listings. This early access can be crucial in capitalizing on market movements and securing positions before widespread trading commences.
Now that you’re a bit more familiar with the foundations of Bybit Pre-Market Perpetuals, here’s a detailed guide on how you can get started with it. However, before proceeding with Bybit Pre-Market Perpetuals, please ensure that you have an active Bybit account. If you don’t have one, register for a Bybit account (and please refer to our sign-up guide for more details).
Step 1: Log in to your Bybit account and hover your cursor over the Derivatives tab on the navigation bar at the top of the page. Then, click on Pre-Market Perpetuals.
Step 2: Select the Pre-Market Perpetual you’re interested in, and click on the corresponding Join Auction Now button.
Step 3: You’ll be redirected to the Pre-Market Perpetual contract page.
For contracts that haven’t yet started Call Auction:
View detailed information, such as the auction time and listing time, and subscribe to the contract before the auction starts.
For contracts that have started Call Auction:
Click on Join Auction Now to navigate to the Contract Order page, and enter the required order parameters.
Please note that only Limit Orders are supported during the continuous auction phase.
Prices for Pre-Market Perpetuals are determined through the interaction of long and short trades. This process involves setting a price quote by matching the highest quantity based on the buy and sell orders. It's important to be aware that the price of the Pre-Market Perpetuals determined during this pre-market phase may differ from the eventual price of the token once it’s officially listed.
Step 4: Upon successful opening, the system will match all buy and sell orders that can be fulfilled at the determined opening price.
Step 5: Once the Call Auction ends and the contract is officially listed on the Pre-Market platform, it will enter the Continuous Auction stage.
In this phase, Pre-Market Perpetuals trading will function similarly to standard Derivatives trading. However, there’s one key difference: the calculation of the index price. Once the contract becomes an official Perpetuals contract, an announcement will be made.
Please note that the auction will fail if the minimum order quantity on either the long order or short order doesn’t meet the required threshold of 50. If this happens, all orders will be canceled and the contract will be delisted.
There are two possible scenarios in which you can cancel a Pre-Market Perpetuals order:
Within 23 hours and 50 minutes after the Call Auction commences.
During the Continuous Auction phase.
To cancel your order, navigate to the Current Orders tab and click on the corresponding Cancel button.
Please note that after the period of 23 hours and 50 minutes, order cancellations will no longer be possible.
Using Bybit Pre-Market Perpetuals can offer a strategic advantage that allows traders to access positions at potentially favorable prices before broader market exposure. This early access could lead to strategic positioning ahead of market trends or significant news that could affect an asset's price once officially listed. However, it's important to consider the risks, such as market uncertainty. Since early prices may not reflect the asset's true value post-listing, this could lead to potential unexpected gains or losses. Additionally, liquidity might be lower in pre-market phases, leading to higher volatility and possibly wider bid-ask spreads.
Risk management is crucial in this volatile environment. Traders should use risk management tools, such as stop-loss and limit orders, and perhaps start with smaller trades to manage potential impacts on their portfolios. Bybit Pre-Market Perpetuals is particularly suitable for experienced traders, who are familiar with Derivatives and can navigate the complexities of early market entry. Newer traders should ideally gain more experience with standard market trading before venturing into pre-market activities.
Bybit Pre-Market Perpetuals provides an avenue for early market entry, presenting both opportunities and risks. While traders can potentially capitalize on early positions, they need to have a solid grasp of both market dynamics and careful risk management. Thus, traders looking to use Bybit Pre-Market Perpetuals need to weigh these factors carefully in order to make informed decisions.
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