How to close a position on the Bybit app?

Closing a Position on the Bybit App: A Step-by-Step Guide

Trading on Bybit involves opening and managing leveraged positions, and knowing how to close a position efficiently is essential for preserving capital and locking in profits. The Bybit app provides a user-friendly interface that allows traders to close positions with just a few taps. Whether you're dealing with isolated or cross margin modes, the process remains consistent across both spot and perpetual contracts.

1. Launch the Bybit app on your mobile device and log in to your account. Ensure you are on the trading interface where your open positions are visible. This is typically located under the 'Derivatives' or 'Futures' tab depending on your account setup.

2. Locate the 'Positions' section on the screen. Here, you’ll see a list of all your active long and short positions, including details like entry price, liquidation price, unrealized P&L, and leverage settings.

3. Tap on the specific position you wish to close. A pop-up or expanded view will appear, displaying more granular information about the trade, including the current mark price and available order types.

4. Select the 'Close' option. Bybit will automatically populate a market order to close the entire position at the prevailing market price. You can also choose to close a partial amount by adjusting the quantity manually before confirming.

5. Review the order details carefully. Confirm the order type, size, and expected execution price. Once satisfied, tap 'Confirm' to execute the close order. The position will disappear from the open positions list once the transaction is processed.

Understanding Order Types When Closing

When closing a position, traders have the flexibility to choose between different order types based on their strategy and market conditions. While the default option is often a market order, using limit or conditional orders can offer more control.

1. Market orders execute immediately at the best available price, ensuring the position closes right away. This is ideal in fast-moving markets where speed is crucial.

2. Limit orders allow you to specify the exact price at which you want to close. This helps avoid slippage but carries the risk of non-execution if the market doesn’t reach your set price.

3. Reduce-only orders are particularly useful when managing risk. Enabling this option ensures the order will only reduce your existing position and not add to it, even if the order would otherwise open a new opposite position.

4. Traders using advanced strategies may combine take-profit and stop-loss orders with their open positions. These can be set to trigger automatically, effectively closing the trade when predefined price levels are hit.

5. It’s important to monitor the order book and recent trades when deciding on the order type. Sudden volatility or low liquidity can impact execution quality, especially for large positions.

Managing Partial Closures and Risk

Not all traders need to close an entire position at once. Partial closures allow for profit-taking while maintaining exposure to potential further gains.

1. In the position details screen, instead of selecting 'Close All,' manually enter the amount you wish to close. This could be 50%, 25%, or any custom quantity based on your risk tolerance.

2. Execute the partial close using your preferred order type. The remaining position will continue to be reflected in your portfolio with adjusted entry and P&L calculations.

3. After a partial closure, review your updated margin usage and liquidation price. Reducing position size typically increases your safety buffer against adverse price movements.

4. Consider rebalancing your leverage after closing part of a position. Lowering leverage post-exit can help maintain stability in volatile conditions.

5. Keep track of your transaction history within the app to ensure all closures are accurately recorded. This aids in performance analysis and tax reporting.

Always double-check the direction and size of your close order to prevent accidental trades.

Using reduce-only settings prevents unintended position increases during volatile market swings.

Monitor real-time funding rates before closing perpetual positions to avoid unnecessary cost deductions.

Frequently Asked Questions

Can I close a position using a stop-loss order?Yes, you can set a stop-loss order that automatically closes your position when the price reaches a specified level. This is done in the 'Conditional Orders' section when the position is open.

What happens if I close a position with negative funding fees?If your position has accrued funding fees, closing it will settle those fees immediately. You’ll pay or receive the net amount based on the number of funding intervals passed.

Is it possible to close a position on the web version of Bybit?Yes, the process is nearly identical on the Bybit web platform. Navigate to the futures trading interface, find your open positions, and click the 'Close' button next to the desired trade.

Why does my position show a delay in closing?Delays can occur due to network latency, low liquidity, or high market volatility. If the order isn’t filled immediately, check the order status in the 'Open Orders' tab and consider adjusting the price or switching to a market order.