Pre-market trading is an exciting method that grants investors early access to tokens from popular projects even before their Token Generation Event (TGE). This early entry provides opportunities to secure strategic positions and maximize potential profits.
However, as with all crypto trading, there are inherent risks, and pre-market trading is no exception. Most pre-market platforms today require investors to lock up assets as collateral, which can reduce flexibility and limit capital use. In some cases, investors may even face the risk of assets being permanently locked on these platforms.
If that sounds unsettling, there’s good news: Unich Pre-Market OTC has developed a solution. It is currently the only platform with a Cashout Order function, allowing users to withdraw funds and exit positions whenever they wish. Here’s how it works.
What is Collateral in Pre-Market Trading and Why is It Important?
In pre-market trading, collateral allows investors to engage in trades without owning tokens. Here’s a brief outline of the process:
- Trading Time: Investors set up buy or sell orders at their preferred prices, which can be matched by others looking to trade similar amounts. Both parties deposit collateral into a smart contract to initiate the trade.
- Settlement: Following the official token launch, both parties have a limited time window to complete the order by depositing the actual tokens and the remaining collateral.
- Close Order: Buyers and sellers must execute the final settlement. Failure to do so results in the forfeiture of collateral, which transfers to the counterparty.
However, if a token’s TGE is delayed, investors’ collateral can remain locked for extended periods. Many platforms require collateral equal to 100% of the trade volume, creating liquidity challenges and reducing capital efficiency.
How Does Unich Pre-Market OTC Address This Issue?
Unich Pre-Market OTC offers unique advantages that make it easier for investors to manage their assets in pre-market trading:
- 50% Margin Ratio: Instead of the full 100% collateral required by other platforms, Unich only requires a 50% margin ratio. This lower collateral requirement enhances liquidity and allows investors to use their capital more efficiently.
- Cashout Order Function: The Cashout Order feature allows users to exit positions and withdraw partial or full collateral by swapping the position with another investor at any time.
These features give investors greater control over their assets. If a particular token no longer fits an investor’s strategy, they can easily cash out and allocate funds to more promising opportunities.
Conclusion
Capital efficiency is crucial for investors, and Unich Pre-Market OTC recognizes this need with the Cashout Order function—a unique solution in today’s market. Unich ensures no asset lock-up is required, giving investors flexibility and control over their capital at all times.
