💹Pre-trading
How pre-trading works in Buzzing
This guide will help you understand how markets transition from the Pre-Trading stage to the official Launch stage, and the unique benefits of becoming an Early Believer.
What is Pre-Trading?
When a market is first created on Buzzing, it begins in the Pre-Trading stage. During this phase:
Users who participate are called Early Believers.
Early Believers can place bets on either 'Yes' or 'No' options.
If the market does not reach the target total amount, it will remain in the Pre-Trading stage.
You can always take back your betting without any loss during the pre-trading stage.
Early Settlement in the Pre-Bet Stage
If the market outcome is determined during the Pre-Bet stage (for example, if a match concludes):
The market will settle immediately.
Settlement works as follows:
a. The losing side’s total bet amount is divided equally among the winners.
b. Example: If $10 was bet on 'Yes' and $5 was bet on 'No,' the $5 from the losing side will be split among the $10 on the winning side.
c. This means every $1 bet on 'Yes' would earn an additional $0.50.
Market Launch and Free-Trading Stage
If the total bet amount in the Pre-Bet stage reaches the target amount, the market will officially launch and transition to the free-trading stage.
Here’s what happens during the Launch stage:
The market follows standard prediction market rules, allowing users to freely buy and sell 'Yes' and 'No' shares.
Prices for 'Yes' and 'No' shares update in real-time, reflecting the market’s current odds.
Unlike the Pre-Trading stage, profits depend on the timing and pricing of your trades. Early and late buyers may see different returns based on when they bought shares.
Benefits of Being an Early Believer
As an Early Believer, your position in the Pre-Bet stage will automatically transition into a formal position when the market launches.
Here are the unique benefits of being an Early Believer:
Game Profit: If your prediction is correct, you’ll earn profits based on the market’s outcome.
Fee Rebates: Early Believers receive a share of trading fees as a reward for their early support, regardless of the outcome.
Becoming an Early Believer allows you to shape the market while enjoying exclusive rewards like fee rebates and potential game profits.
Join the Pre-Trading stage, claim your Early Believer status, and start earning by shaping the future of prediction markets.
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