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Secondary Market Trading Guide

Last updated on Dec 12, 2025

Secondary Market Trading Guide

A complete guide to buying and selling property tokens on the SecondaryDAO marketplace.

What is Secondary Trading?

After a property’s initial token sale is complete, token holders can buy and sell their tokens with other investors on the secondary market. This works like a stock exchange:

  • Sellers list tokens they want to sell at their asking price

  • Buyers place orders for tokens they want to buy at their bid price

  • When prices match, trades execute automatically

How the Order Book Works

The order book shows all active buy and sell orders for a property:

**Sell Orders (Red)Buy Orders (Green)**Lowest prices at topHighest prices at topThese are “asks”These are “bids”Sellers waiting for buyersBuyers waiting for sellers

The Spread: The gap between the lowest sell price and highest buy price. When these prices overlap (buyer willing to pay more than seller is asking), trades happen automatically.

How to Sell Your Tokens

Step 1: Navigate to Secondary Trading

Go to the property page and select the “Secondary Trading” or “Order Book” section.

Step 2: Enter Your Sell Order

  • Token Amount: How many tokens you want to sell

  • Price per Token: Your asking price in USD

Step 3: Approve the Transaction

Your wallet will ask you to approve the transaction. This is a one-time security step per property that allows the system to transfer tokens when your order is filled.

Step 4: Your Order is Live

Your sell order now appears in the order book (red side). Other traders can see it and buy from you.

Step 5: Wait for a Match

When a buyer’s price meets or exceeds your asking price: - The trade executes automatically - You receive USDC (minus any trading fees) - The buyer receives your tokens

Step 6: Order Expiration

If your order isn’t filled within 7 days (default), it automatically cancels. You can also cancel it manually at any time.

How to Buy Tokens

Step 1: Navigate to Secondary Trading

Go to the property page and select the “Secondary Trading” or “Order Book” section.

Step 2: Enter Your Buy Order

  • Token Amount: How many tokens you want to buy

  • Price per Token: The maximum price you’re willing to pay

Step 3: Approve USDC Spending

Your wallet will ask you to approve USDC spending. This allows the system to transfer payment when your order is filled.

Step 4: Your Order is Live

Your buy order now appears in the order book (green side). Sellers can see your bid.

Step 5: Wait for a Match

When a seller’s price is at or below your bid: - The trade executes automatically at the seller’s price - You receive the property tokens - The seller receives your USDC payment

Step 6: Order Expiration

If your order isn’t filled within 7 days (default), it automatically cancels. You can also cancel it manually at any time.

Understanding the Order Book Display

SELL ORDERS (Asks)           BUY ORDERS (Bids)
Price    Tokens  Total       Price    Tokens  Total
$52.00   100     $5,200      $48.00   150     $7,200  ← Best bid
$51.50   200     $10,300     $47.50   100     $4,750
$51.00   50      $2,550      $47.00   200     $9,400
$50.50   75      $3,788  ←   $46.50   125     $5,813
         Best ask (lowest)

Spread: $2.50 ($50.50 - $48.00)

Reading the order book: - Best Ask: The lowest price someone is willing to sell at ($50.50 in example) - Best Bid: The highest price someone is willing to pay ($48.00 in example) - Spread: The gap between best bid and best ask ($2.50 in example) - When spread is zero or negative: Orders will match and trades execute

When Orders Match

Orders match when a buyer is willing to pay at least what a seller is asking.

Example: - You place a buy order at $50.00 - A seller has an order at $48.00 - Result: Trade executes at $48.00 (seller’s price) - You pay less than your maximum!

The rule: Trades always execute at the seller’s price, which benefits buyers who bid higher.

Top 10 Frequently Asked Questions

1. How long are my orders valid?

Orders are valid for 7 days by default, with a maximum of 30 days. After expiration, orders automatically cancel.

2. What fees do I pay?

Trading fees vary by property and are set by the property administrator. Check the property details page for the current fee rate. Fees are deducted automatically when trades execute.

3. Why do I need to approve transactions in my wallet?

This is a standard blockchain security measure. You’re giving permission for the trading system to move tokens or USDC on your behalf when orders match. It’s a one-time approval per property.

4. Do I need to be verified to trade?

Yes, your wallet must be verified (KYC/AML approved) before you can participate in secondary trading. This ensures compliance with regulations.

5. How does price matching work?

When your buy price is equal to or higher than a sell price, the trade executes at the seller’s price. This means buyers may pay less than their maximum bid.

6. Can I have multiple orders at once?

You can have one active buy order and one active sell order per wallet, per property. Creating a new order of the same type will replace your existing order.

7. What happens if I don’t have enough funds?

If your balance drops below what’s needed for your order, the order will be automatically cancelled. There’s no penalty for this.

8. Can I cancel my order?

Yes! You can cancel any open order at any time before it’s filled. Just click the cancel button next to your order.

9. What is the spread?

The spread is the difference between the highest buy price (best bid) and lowest sell price (best ask). A smaller spread means a more liquid market. When the spread is zero or negative, trades execute immediately.

10. Why did my trade fail?

Common reasons: - Your wallet isn’t verified (KYC not approved) - Insufficient token balance (for sellers) - Insufficient USDC balance (for buyers) - Order expired - Trying to trade with yourself (not allowed)

Troubleshooting

“Insufficient Balance” Error

For sellers: Make sure you have enough tokens to cover your sell order. For buyers: Make sure you have enough USDC to cover the purchase price plus fees.

“Approval Required” Message

Click “Approve” in your wallet to allow the trading system to access your tokens or USDC. This is a one-time step per property.

“Verification Required” Error

Your wallet needs to be KYC verified before trading. Contact support if you believe you should be verified.

Order Not Showing Up

  • Refresh the page

  • Check that your wallet is connected

  • Verify the transaction completed in your wallet

Trade Didn’t Execute

Even if prices overlap, trades may not execute if: - Either party’s balance changed - Either party isn’t verified - The order expired between matching and execution

Glossary

Term Definition

Ask A sell order; the price a seller wants

Bid A buy order; the price a buyer offers

Spread The gap between the best bid and best ask

Order Book The list of all open buy and sell orders

Limit Order An order at a specific price (all orders are limit orders)

Fill When an order is matched and executes

Partial Fill When only part of an order executes

USDC The stablecoin used for payments (1 USDC = $1 USD)

Token A digital share representing ownership in a property

KYC “Know Your Customer” - identity verification

Need Help?

If you have questions not covered in this guide: - Check our other Help Center articles - Contact support through the chat widget - Email [email protected]

Last updated: December 12, 2025