Collateral 1:1 does not mean the price will be 1:1.

Did you know that about 58% of the volume of equity-related trades on Binance happens when Nasdaq and NYSE are already closed? That means most trading takes place in the thinnest order book. In my opinion, this is the most practical risk in bStocks that somehow doesn’t get talked about much.

Here are three things you should understand about the bStock price:

1. Premium and discount. Collateral guarantees that a real share backs the token, but the order book sets the price every second. Higher than the reference price of the underlying asset is a premium, lower is a discount. The reference price is a benchmark here, not a binding factor.

2. Spread. While the main session is open, the gap is narrow and closes quickly. Outside the session, there’s nothing to check in real time against: there are fewer orders, the spread is wider, and a market order may fill noticeably worse than what the chart shows.

3. Market makers. They hold quotes on both sides and squeeze the spread, but they do not eliminate it.

That’s why in 24/7 access there’s also the other side. You have to check the price yourself, because no one will do it for you at 3 a.m.

Not investment advice. DYOR.

$SPCXB @BinanceCIS #bstockscis

And what are you looking at before placing a trade outside the main session?