What are the advantages of trading contracts on Bybit?

High Leverage Options for Enhanced Exposure

One of the most significant advantages of trading contracts on Bybit is the availability of high leverage options, which allow traders to control larger positions with relatively small capital. Bybit supports leverage up to 100x on certain perpetual and inverse contracts, giving traders the ability to amplify potential returns. This is particularly appealing in the volatile cryptocurrency market, where even small price movements can lead to substantial gains when leveraged appropriately. It's crucial to understand that leverage works both ways—while it magnifies profits, it also increases the risk of liquidation. Traders can adjust their leverage manually before opening a position, ensuring control over risk exposure. The platform provides a real-time liquidation price calculator, helping users assess how much price movement their position can withstand before being liquidated.

Advanced Trading Interface and Tools

Bybit offers a professional-grade trading interface designed for both novice and experienced traders. The platform features a customizable dashboard with multiple chart types, including candlestick, Heikin-Ashi, and line charts. Integrated with TradingView, Bybit enables users to apply a wide range of technical indicators such as RSI, MACD, Bollinger Bands, and Fibonacci retracements directly on the platform. The interface supports multi-chart layouts, allowing traders to monitor several assets simultaneously. Order types like limit, market, stop-limit, and take-profit/stop-loss are fully supported, giving users precise control over entry and exit points. The depth chart and order book are displayed in real time, providing transparency into market liquidity and helping traders make informed decisions based on current bid and ask volumes.

Wide Range of Supported Contracts

Bybit provides access to a diverse selection of perpetual and futures contracts across multiple cryptocurrencies. Traders can engage with BTC/USDT, ETH/USDT, SOL/USDT, and numerous altcoin pairs, all available as USDT-margined contracts. In addition, Bybit supports inverse contracts denominated in Bitcoin and Ethereum, which are ideal for traders who prefer to hold their base cryptocurrency. The platform continuously adds new trading pairs based on market demand and liquidity. Each contract includes detailed specifications such as funding rates, maintenance margin, and max order size, accessible directly on the trading page. This variety allows traders to diversify their strategies across different assets and choose instruments that align with their risk appetite and market outlook.

Competitive Fee Structure and Funding Rates

Bybit operates on a maker-taker fee model that is highly competitive within the crypto derivatives space. Maker fees are typically set at -0.025%, meaning makers are rewarded for adding liquidity to the market. Taker fees are usually 0.075%, though these rates can vary slightly depending on the user’s 30-day trading volume and VIP tier. High-volume traders can qualify for lower fees through Bybit’s VIP program, which offers tiered benefits based on cumulative trading activity. Regarding funding rates, Bybit settles them every 8 hours and displays the next rate in advance, allowing traders to anticipate costs when holding perpetual positions overnight. The platform ensures that funding rates remain close to fair market value by using a premium index mechanism, preventing extreme deviations and protecting traders from unexpected charges.

Robust Risk Management Features

Bybit equips traders with comprehensive tools to manage risk effectively. Users can set isolated or cross-margin modes depending on their risk tolerance. In isolated margin mode, the risk is confined to the allocated margin for a specific position, preventing the entire account balance from being at risk. Cross-margin mode uses the entire available balance as collateral, which may help avoid liquidation during sharp price swings. The platform also features ADL (Auto-Deleveraging) protection, which activates only in extreme market conditions when liquidations cannot be handled by the insurance fund. Traders receive real-time margin ratio alerts and can monitor their position health through a color-coded system. Additionally, stop-loss and take-profit orders can be set with precision down to the decimal point, enabling disciplined trading strategies.

Reliable Infrastructure and Security Measures

Bybit runs on a high-performance matching engine capable of processing millions of orders per second, ensuring minimal latency even during periods of high volatility. The platform boasts 99.9% uptime, supported by a distributed server architecture and multi-layered redundancy systems. Security is a top priority, with cold wallet storage protecting the majority of user funds. Bybit implements multi-signature wallets and hierarchical deterministic (HD) cold wallet technology to safeguard assets. User accounts are protected by two-factor authentication (2FA), anti-phishing codes, and withdrawal address whitelisting. The platform also conducts regular penetration testing and employs a dedicated security team to monitor for suspicious activity around the clock.

Frequently Asked Questions

Q: How do I change leverage on Bybit before opening a position?Navigate to the contract trading page, select your desired trading pair, and locate the leverage slider near the order entry panel. Click on it and input the preferred leverage value (e.g., 10x, 25x). Confirm the change, and the new leverage will apply to any new orders you place.

Q: What is the difference between USDT-margined and inverse contracts on Bybit?USDT-margined contracts use stablecoins (like USDT) as collateral, making P&L calculations straightforward in fiat-equivalent terms. Inverse contracts use BTC or ETH as collateral, meaning profits and losses are paid in the base cryptocurrency, which can be beneficial for long-term holders who want to avoid stablecoin exposure.

Q: How often are funding fees charged on Bybit perpetual contracts?Funding fees are charged every 8 hours at 00:00 UTC, 08:00 UTC, and 16:00 UTC. The rate is determined by the difference between perpetual contract prices and the underlying index price, and it is displayed in advance on the trading interface.

Q: Can I set both take-profit and stop-loss on the same order?Yes. When placing a new order, expand the 'Advanced' section and enable 'Take Profit / Stop Loss'. Input your desired trigger prices and order types (limit or market) for each. Both will be attached to your position and executed automatically when conditions are met.