Bybit currency-based contract tutorial

In Bybit's currency-based contracts, traders speculate on crypto price movements against a stablecoin, with positions settling in the quoted currency (USDT or BUSD), ensuring enhanced liquidity and reduced volatility.

Nov 19, 2024 at 02:48 pm

Bybit Currency-Based Contract TutorialStep 1: Understanding Currency-Based Contracts

Currency-based contracts, also known as inverse perpetual contracts, are derivative instruments that allow traders to speculate on the price movements of cryptocurrencies against a stablecoin, typically USDT or BUSD.
Unlike traditional futures contracts, which settle in the underlying asset, currency-based contracts settle in the quoted currency, providing increased liquidity and reduced volatility.
Traders can take long or short positions on these contracts, betting on whether the price of the cryptocurrency will rise or fall against the stablecoin.

Step 2: Choosing a Currency-Based Contract

Bybit offers a wide range of currency-based contracts, each based on a different cryptocurrency pair.
Popular pairs include BTC/USDT, ETH/USDT, and LINK/USDT.
Traders should consider the volatility and liquidity of each pair before selecting a contract.

Step 3: Funding Your Account

To trade currency-based contracts on Bybit, traders must first fund their accounts.
Bybit supports various funding methods, including cryptocurrencies, credit/debit cards, and bank transfers.
Once funds are deposited, traders can transfer them to their trading account.

Step 4: Opening a Position

To open a long position, traders need to buy the contract.
To open a short position, traders need to sell the contract.
The position size represents the number of contracts traded and determines the potential profit or loss.

Step 5: Managing Risk with Leverage and Stop-loss

Bybit offers leverage of up to 100x on currency-based contracts, which can amplify both profits and losses.
It is crucial to use leverage wisely and set appropriate stop-loss orders to manage risk.
Stop-loss orders automatically close positions when the price reaches a predetermined level, preventing excessive losses.

Step 6: Monitoring and Settling Positions

Traders can monitor their open positions in the "Positions" section of the Bybit interface.
Positions can be closed manually or through take-profit or stop-loss orders.
Upon closing a position, gains or losses are settled in the quoted currency.

Disclaimer:info@kdj.com

The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research！

If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.

Fear & Greed Index

Trade Now

Biggest Gainers

RAIN

$0.007852

113.00%

Trade Now
PIPPIN

$0.06097

51.96%

Trade Now
PARTI

$0.1396

42.04%

Trade Now
WAVES

$0.9141

41.69%

Trade Now
ARC

$0.04302

35.73%

Trade Now
HONEY

$0.01029

21.80%

Trade Now

Latest Crypto News

Bitcoin, eCash Fork, and Airdrop Dynamics: A Deep Dive into Crypto's Latest Controversies
2026-05-03 12:55:01
Consensus 2026 Miami: Web3, Blockchain, Cryptocurrency, NFTs, Metaverse, Conference, May 5th — Where Wall Street Meets the Digital Frontier
2026-05-02 12:45:01
Fed Holds Rates Steady, Triggering Bitcoin Price Drop Amidst Geopolitical Tensions
2026-05-01 06:45:01
Bitcoin Miners Electrify the Grid: Ohio Gas Plant Acquisition Powers Up a New Era for Digital Gold
2026-05-01 00:45:01
MegaETH's MEGA Token Hits the Big Apple: Setting New Performance Benchmarks for Real-Time Blockchain
2026-05-01 00:55:01
Solana's Slippery Slope: Price Prediction Points to Resistance Loss and Potential Further Drops
2026-05-01 06:45:01

Related knowledge

How Is AVAX Futures Margin Requirement Calculated?

Jul 23,2026 at 03:40pm

AVAX Futures Margin Structure1. AVAX futures margin consists of two distinct components: initial margin and maintenance margin. These are calculated i...

What Is the Maximum Leverage for ADA Perpetual Futures?

Jul 28,2026 at 07:40am

ADA perpetual futures leverage varies across exchanges depending on jurisdiction, user tier, and risk management policies. As of July 2026, major plat...

Why Does ADA Contract Margin Ratio Trigger Warnings?

Jul 22,2026 at 09:00am

ADA Contract Margin Ratio Mechanics1. The ADA perpetual contract on major exchanges uses a dynamic margin ratio calculated in real time based on posit...

What Is ADAUSDT Perpetual Contract Funding Rate?

Jul 24,2026 at 08:19pm

Definition and Purpose of ADAUSDT Perpetual Contract Funding Rate1. The ADAUSDT perpetual contract funding rate is a periodic fee exchange mechanism a...

How Much Leverage Is Recommended for TON Perpetual Trading?

Jul 27,2026 at 05:20pm

TON Perpetual Trading Mechanics1. TON perpetual contracts operate on decentralized and centralized exchanges with varying margin models. 2. Funding ra...

What Is TON Futures Liquidation Price Formula?

Jul 23,2026 at 09:19am

TON Futures Liquidation Mechanism1. Liquidation in TON futures occurs when a trader’s margin balance falls below the maintenance margin requirement se...