Bybit Trading Tutorial: A Step-by-Step Guide to Your First Perpetual Contract.

Getting Started with Bybit: Setting Up Your Account

1. Navigate to the official Bybit website and click on the 'Sign Up' button located at the top right corner of the homepage. You will be prompted to enter your email address, create a secure password, and complete phone verification for added security.

2. After registration, confirm your email by clicking the link sent to your inbox. This step ensures that your account is verified and ready for funding and trading activities.

3. Enable two-factor authentication (2FA) using an authenticator app like Google Authenticator. This adds an essential layer of protection against unauthorized access to your funds and personal data.

4. Complete the KYC (Know Your Customer) process if you plan to increase withdrawal limits or access certain advanced features. While Bybit allows basic trading without KYC, full functionality requires identity verification.

5. Deposit funds into your account through supported methods such as USDT, ETH, or BTC transfers. Ensure you select the correct network type when depositing stablecoins to avoid irreversible losses.

Understanding Perpetual Contracts on Bybit

1. Perpetual contracts are derivative instruments that allow traders to speculate on price movements without owning the underlying asset. These contracts do not have an expiration date, making them ideal for both short-term and long-term positions.

2. Bybit offers both inverse and linear perpetual contracts. Inverse contracts are denominated in cryptocurrency (e.g., BTCUSD), while linear contracts use stablecoins like USDT as collateral, reducing volatility exposure from the base currency.

3. Leverage options on Bybit range from 1x up to 100x depending on the symbol and position size. Higher leverage amplifies both potential gains and risks, so proper risk management is vital.

4. The platform displays key metrics including mark price, last traded price, open interest, and liquidation levels. Understanding these indicators enhances decision-making during active trades.

Executing Your First Trade on Bybit

1. From the main dashboard, navigate to the 'Derivatives' section and select 'USDT Perpetual' or another preferred contract type. Choose a trading pair such as BTC/USDT to begin.

2. Set your desired leverage using the slider or input field above the order book. For beginners, it's advisable to start with lower leverage—between 5x and 10x—to minimize liquidation risk.

3. Decide whether to go long (buy) if you expect prices to rise, or short (sell) if you anticipate a decline. Use technical analysis tools available on the integrated charting interface to support your decision.

4. Place your order by selecting either a market order for immediate execution or a limit order to specify your entry price. Confirm all details before submitting the trade.

Risk Management and Position Monitoring

1. Keep a close eye on your margin balance and maintenance margin requirements. Falling below the maintenance threshold may result in partial or full liquidation of your position.

2. Adjust your position size based on account equity and current market volatility. Avoid allocating excessive capital to a single trade, especially in highly leveraged scenarios.

3. Utilize Bybit’s profit and loss calculator to simulate outcomes under different price conditions. This tool aids in refining entry and exit points prior to placing real orders.

4. Review historical funding payments in your wallet statement. Positions held over funding intervals will incur charges or receive payouts, impacting overall profitability.

5. Regularly check open orders and active positions through the 'Positions' tab. Close trades manually or let predefined triggers handle exits according to your strategy.

Frequently Asked Questions

What happens if my position gets liquidated?When your margin falls below the required maintenance level, Bybit automatically closes your position to prevent further losses. A portion of the initial margin may be deducted as a fee during this process.

Can I change leverage after opening a position?Yes, Bybit allows users to adjust leverage dynamically while a position is open. This feature enables better control over risk exposure as market conditions evolve.

How often are funding fees charged?Funding fees are exchanged every 8 hours at fixed timestamps: 00:00 UTC, 08:00 UTC, and 16:00 UTC. Traders pay or receive funds depending on whether they hold long or short positions.

Is there a minimum amount required to open a perpetual contract trade?The minimum order value varies by symbol but typically starts around $10 worth of the base asset. Check the specific contract specifications for exact thresholds before placing trades.