How to close a position in Bybit contracts?

Understanding Position Closure in Bybit Futures Trading

Closing a position in Bybit contracts refers to the process of exiting an open futures trade to lock in profits or cut losses. This action effectively ends your exposure to price movements in the selected cryptocurrency pair. Whether you hold a long position (betting the price will rise) or a short position (expecting the price to fall), closing the trade involves placing an opposite order of equal size. It is crucial to understand that closing a position is not automatic and must be manually executed unless a stop-loss or take-profit order is in place. The platform supports both cross margin and isolated margin modes, and the method of closure remains consistent across both.

Manual Position Closure via the Web Interface

To manually close a position on Bybit using the web platform, follow these steps:

• Log in to your Bybit account and navigate to the 'Contract' section.
• Select the specific trading pair (e.g., BTCUSD) where your position is open.
• Locate the 'Positions' tab at the bottom of the trading interface.
• Identify your current open position—either long or short.
• Click the 'Close' button adjacent to the position.
• A pop-up window will appear, allowing you to choose the order type: Market, Limit, or Conditional.
• If selecting Market Order, the position will close instantly at the best available price.
• Confirm the order by clicking 'Close Long' or 'Close Short', depending on your position type.

Ensure that you review the estimated closing price and potential fees before confirming. A market order ensures execution but may suffer slippage during high volatility. Using a limit order allows you to set a specific price but risks non-execution if the market doesn’t reach it.

Using Take-Profit and Stop-Loss Orders to Automate Closure

Bybit allows traders to set take-profit (TP) and stop-loss (SL) orders to close positions automatically when certain price levels are reached. These tools are essential for risk management.

• While opening a position, scroll down to the 'Take Profit / Stop Loss' section.
• Toggle on the 'TP/SL' switch to enable these orders.
• Enter your desired take-profit price—this is the price at which you want to lock in gains.
• Input your stop-loss price—this limits potential losses if the market moves against you.
• Choose whether to set the values as price or percentage.
• Select the execution type: Limit or Market for TP/SL.
• Click 'Set' to confirm.

These orders remain active even if you log out, provided your position stays open. You can modify or cancel them anytime via the 'Positions' tab by clicking the 'Edit' option next to TP/SL. It's important to note that partial take-profit settings are supported, allowing you to close portions of your position at different price levels.

Closing Positions via Mobile App

The Bybit mobile app offers full functionality for closing futures positions. The process mirrors the web version but is optimized for touch navigation.

• Open the Bybit app and log in.
• Tap on the 'Derivatives' tab at the bottom.
• Select the correct contract type (e.g., Inverse Perpetual or USDT Perpetual).
• Find the trading pair with the open position.
• Tap on the 'Positions' section.
• Locate your active position and tap the 'Close' button.
• Choose Market, Limit, or Conditional order type.
• For Market, confirm the closing action immediately.
• For Limit, input your desired price and quantity before confirming.

The mobile interface displays real-time P&L, mark price, and liquidation price, helping you make informed decisions. Push notifications can alert you when your TP/SL is triggered, ensuring you stay updated even when the app is closed.

Partial Position Closure and Advanced Settings

Bybit supports partial position closure, allowing traders to close only a portion of their open contracts. This is useful for scaling out of trades or managing risk incrementally.

• In the 'Positions' tab, click 'Close'.
• Instead of using the full position size, manually adjust the quantity field to a smaller amount.
• Select Limit or Market execution.
• Confirm the order.

You can repeat this process until the entire position is closed. Additionally, traders can use Reduce-Only orders to prevent accidental position increases. When placing a limit order to close, enable 'Reduce-Only' in the order settings. This ensures the order will only reduce your current position and won’t open a new opposing one if the price moves unexpectedly.

Risks and Considerations When Closing Contracts

Closing a position may incur trading fees, which vary based on your fee tier and whether you are a maker or taker. Market orders typically incur taker fees, while limit orders that add liquidity may qualify for maker rebates. Slippage is another factor, especially during high volatility or low liquidity. Using limit orders can mitigate this but may result in delayed execution.

Liquidation risks exist before closure, particularly in isolated margin mode. If the mark price reaches your liquidation price, the position will be closed automatically at a loss. Ensure sufficient margin is maintained or use stop-loss orders to avoid this. Also, be aware that funding fees are charged every 8 hours for perpetual contracts and may affect net profit when closing after a funding interval.

Frequently Asked Questions

Can I close a Bybit position using an API?Yes. Bybit provides a REST API and WebSocket interface. Use the close_order endpoint with proper authentication. You must include parameters like symbol, order_type, and qty. Ensure your API key has trade permission enabled and use HTTPS for secure communication.

What happens if I don’t close a position before liquidation?If the mark price reaches your liquidation level, Bybit will automatically close the position at the prevailing market price. This usually results in a total loss of margin. A bankruptcy price calculation determines when this occurs, and partial liquidation may happen in extreme cases.

Why does my 'Close' button appear grayed out?This typically occurs when your order size exceeds available balance or when Reduce-Only is violated. It can also happen during maintenance or connectivity issues. Refresh the page, check your margin, and ensure no conflicting orders are active.

Can I set a trailing stop to close my position?Yes. Bybit supports trailing stop orders. Go to the 'Conditional Orders' tab, select Trailing Stop, set the activation price and callback rate, then link it to your position. Once activated, it follows the price and closes the trade if the market reverses by the specified percentage.