How to check your margin ratio on Bybit?

Understanding Margin Ratio on Bybit

1. The margin ratio on Bybit is a key metric that reflects the health of your position in a leveraged trade. It is calculated by dividing the maintenance margin by the total margin and is expressed as a percentage. A lower margin ratio indicates a safer position, while a higher ratio suggests a greater risk of liquidation. Traders must monitor this value closely to manage their exposure effectively.

2. Bybit displays the margin ratio in real time on the trading interface, particularly within the positions tab. This visibility allows users to react quickly to market fluctuations. The platform updates the ratio dynamically as the mark price changes, ensuring that traders have accurate data at all times.

3. The margin ratio is directly tied to your leverage and position size, meaning that higher leverage reduces the buffer before liquidation. For example, opening a position with 100x leverage will result in a much tighter margin ratio compared to using 10x leverage, even with the same entry price and collateral.

4. Users can also observe the liquidation price alongside the margin ratio. When the margin ratio reaches 100%, the position is at risk of being liquidated. Bybit uses a tiered maintenance margin system, which varies based on contract type and position size, affecting how the ratio is computed.

5. It is essential to understand that funding fees, transaction fees, and price volatility can all influence the margin ratio over time. These factors are automatically factored into the calculation, so traders should remain aware of ongoing costs when holding leveraged positions.

Steps to Locate Your Margin Ratio

1. Log in to your Bybit account through the web platform or mobile app. Navigate to the 'Derivatives' section and select the appropriate market, such as USDT Perpetual or Inverse Contracts.

2. Once in the trading interface, go to the 'Positions' tab located at the bottom of the screen. This tab lists all your active positions, including key details like entry price, size, and unrealized P&L.

3. Look for the column labeled 'Margin Ratio' or 'Risk Limit' depending on the interface version. If not immediately visible, click on the specific position to expand additional details, where the margin ratio will be displayed along with the liquidation price and maintenance margin.

4. For a more detailed breakdown, users can access the risk limit settings by clicking on the three-dot menu next to the position. This reveals how different risk tiers affect the margin requirements and, consequently, the margin ratio.

5. Regularly refreshing the page or pulling down to sync ensures that the displayed margin ratio reflects the most current market conditions, especially during periods of high volatility.

Interpreting the Margin Ratio Values

1. A margin ratio below 50% generally indicates a healthy position with a comfortable distance from liquidation. This allows room for price movement without immediate risk.

2. When the margin ratio exceeds 80%, the position enters a high-risk zone. Traders should consider adding margin or reducing position size to avoid potential liquidation.

3. A margin ratio approaching 100% means the position is near liquidation, and even minor price movements could trigger automatic closure. Bybit may issue margin calls or recommend adding funds when the ratio reaches critical levels.

4. Users can set up price alerts or use the built-in insurance fund information to anticipate liquidation scenarios. Understanding how close the current mark price is to the liquidation price helps contextualize the margin ratio.

5. Different contract types, such as linear and inverse perpetuals, may display the margin ratio differently due to variations in collateral and settlement mechanisms. Always verify the contract specifications to interpret the data correctly.

Frequently Asked Questions

What happens when my margin ratio hits 100%?When the margin ratio reaches 100%, your position is subject to liquidation. Bybit’s system will attempt to close the position automatically to prevent further losses. If the liquidation is not fully covered, the insurance fund may be used, and in extreme cases, socialized losses could occur.

Can I improve my margin ratio after opening a position?Yes, you can improve your margin ratio by adding more margin to your position. This increases your total margin, thereby reducing the ratio. You can do this manually through the 'Add/Reduce Margin' option in the positions tab.

Does the margin ratio differ between isolated and cross margin modes?Yes, in isolated margin mode, the margin ratio is calculated based on the fixed margin allocated to that specific position. In cross margin mode, the ratio uses the entire available balance in the wallet as part of the total margin, which can result in a lower ratio if other positions are also active.

Why does my margin ratio change even when the price is stable?The margin ratio can fluctuate due to funding rate payments, transaction fees, or adjustments in the maintenance margin based on position size. Even in stable markets, these ongoing costs affect the total margin and thus the ratio.