Binance has launched a new Pre-Market trading service, allowing users to buy and sell tokens before they are officially listed on the exchange. This gives users an opportunity to acquire tokens early, ahead of public trading.
A pre-trading market allows the buying and selling of assets, such as cryptocurrencies or stocks, before the official market opens. This enables traders to react to overnight news or events and make deals earlier in the day.
Investors can adjust their positions before the main trading day starts, but the lower trading volume during this time can lead to more unpredictable price movements.
The launch of Binance’s Pre-Market trading service is expected to significantly impact the crypto market as it is the largest cryptocurrency exchange by trading volume. The pre-market enables traders to buy or sell cryptocurrencies before regular trading hours, providing more flexibility and a quicker response to important news or events occurring outside normal hours.
The additional trading time increases opportunities for profits and reduces the risk of losses. It also aids in more accurate price discovery by allowing the market to respond to real-time events. This extended trading period may lead to higher market activity and attract more traders, including those from different time zones or with busy schedules.
This can also lead to increased trading activity as investors rush to secure positions in promising tokens, potentially driving up demand and prices.
However, it also introduces the risk of sudden price changes, as there might be fewer buyers and sellers active during these hours, leading to unpredictable price movements.
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Apart from Binance, other exchanges have released similar services. OKX launched pre-market futures in August 2024, while Bybit announced its Pre-Market Perpetuals in the same month. Additionally, Gate started similar services in the first week of September.
The launch of the pre-market by crypto exchanges coincides with the recent surge in TON-based projects. Binance, with its significantly higher trading volume compared to other top exchanges, stands out as a market leader, and with its launchpool service has the potential to significantly transform the pre-market landscape.
