Pre-Market Trading Product Rules

Overview

Pre-market trading on OKX allows users to engage in futures contracts for cryptocurrencies that have not yet been officially launched. These contracts are USDT-margined and serve as a secure platform for price discovery of new tokens.

Product Mechanism

Pre-market trading differs from standard futures markets in several key aspects. Below are the essential mechanisms and risks:

2.1 Index Price

• Before a token's official spot listing, the last traded price of its pre-market futures contract serves as the index price.
• Post-listing, the index price is derived from weighted spot prices across multiple exchanges. The settlement price is the hourly average before delivery.

2.2 Delivery Mechanism

Pre-market contracts are USDT-settled and delivered at a predefined price upon expiry.

2.2.1 Delivery Time:

1. Normal Token Launch:

   • Delivery occurs 3 hours after spot listing.
   • The settlement price is calculated 2–3 hours post-listing.
   • Adjustments follow official announcements if the listing timeline changes.

2. Cancelled or Delayed Launch:

   • If the token launch is cancelled or delayed beyond six months, OKX may delist the contract early.
   • Delivery dates will be announced separately.

2.2.2 Delivery Price:

1. Normal Launch:

   • Uses the average index price (from ≥3 exchanges) during the hour before delivery.
   • OKX reserves the right to adjust the price if market manipulation is detected.

2. Cancelled Launch:

   • Settlement price = Minimum tick size.
   • Estimated price = Rolling average of the index price (updated every 200ms).

2.2.3 Position Limits:

To mitigate delivery risks:

• Users cannot increase positions 1 hour before delivery.

• Only closing orders are allowed:

  • Reduce-only mode: Submit closing orders.
  • Buy/sell mode: Place reduce-only or offsetting orders (≤ current position size).

2.3 Price Limits

Before October 1, 2024:

• Pre-delivery: Orders must stay within ±15% of the hourly midpoint.
• Last 60 minutes: Orders limited to ±5% of the index price.

After October 1, 2024:

• Post-listing: Limits adjust to ±15% of the index price.
• Final hour: Tightens to ±5%.

Midpoint = (Best bid + Best ask) / 2, recalculated every minute.

👉 Read more about futures limits

2.4 Mark Price

• Upper/Lower Bounds: Align with order price limits.

• Calculation:

  • Pre-listing: Moving average of contract midpoint.
  • Post-listing: Weighted blend of index price and basis spread.

2.5 Position Limits

2.5.1 Tiered Limits:

Users’ max position sizes depend on leverage tiers:

2.5.2 User-Specific Limits:

• Market Makers: 100,000 USD.
• Regular Users: 10,000 USD.

Convert USD to contracts using: Contracts = USD Value / Token Price / Face Value.

2.6 Liquidation

Aligned with standard futures:

• Triggers at maintenance margin levels.
• Additional ADL conditions apply for pre-market trades.

2.7 Fees

• Trading Fee: Same as standard futures.
• Delivery Fee: 1% (subject to change).

2.8 Contract Specifications

2.9 Price Disclaimer

Pre-market prices reflect speculative demand and may not match eventual spot prices.

Risk Note: Token supply details are unconfirmed; volatility may occur upon launch.

2.10 Risk Disclosure

Pre-market trading carries higher risks due to:

• Lower liquidity.
• Greater price volatility.
• Potential contract delisting before expiry.

OKX may:

• Adjust pricing mechanisms.
• Suspend trading unilaterally.

👉 Review OKX’s terms and risks

FAQs

Q1: Can I trade pre-market contracts after spot listing?
A: No. These contracts deliver shortly after the token’s spot launch.

Q2: How is the delivery price calculated if a launch is cancelled?
A: It defaults to the minimum tick size (e.g., 0.0001).

Q3: Why are position restrictions applied before delivery?
A: To reduce systemic risk during settlement.

Q4: Are pre-market fees higher?
A: No, but a 1% delivery fee applies.

Q5: What happens if OKX delists a pre-market contract early?
A: Users receive advance notice with adjusted settlement terms.

Q6: How do I convert USD limits to contract sizes?
A: Use: Contracts = USD Value / Token Price / Face Value.

Always monitor positions and announcements for updates.