How does copy trading work with Bybit contracts?

Understanding Copy Trading in the Context of Bybit Contracts

Copy trading on Bybit allows users to automatically replicate the contract positions of experienced traders, known as lead traders, directly into their own accounts. This functionality is available through Bybit’s Copy Trading feature, which is integrated into its derivatives trading platform. When a lead trader opens, adjusts, or closes a futures contract—such as a perpetual or inverse futures contract—the system mirrors those actions in real time for followers, based on predefined settings. The copied trades include parameters like leverage, order type, entry price, and position size, adjusted proportionally to the follower’s allocated balance.

The core mechanism relies on real-time synchronization between the lead trader’s actions and the follower’s account. This process is facilitated through Bybit’s backend matching engine, which ensures minimal latency. Followers can choose lead traders based on performance metrics such as total PnL, win rate, maximum drawdown, and number of followers. It is essential to understand that only contract trades (not spot trades) are eligible for copying within this system.

Setting Up Copy Trading on Bybit

To begin copy trading Bybit contracts, users must first access the Copy Trading section in the Bybit app or website. The following steps outline the setup process:

• Log in to your Bybit account and navigate to the “Copy Trading” tab located in the main menu.
• Browse the list of available lead traders, filtering by criteria such as risk level, 30-day ROI, and trading style.
• Select a lead trader and click “Copy” to open the configuration panel.
• Set the copy mode: choose between Fixed Amount (a set USDT value per trade) or Proportional (a percentage of your balance).
• Adjust the maximum number of concurrent positions you wish to allow from this trader.
• Confirm your settings and activate the copy session.

Once activated, the system will begin mirroring trades. It is critical to ensure your account has sufficient available balance in USDT and that your risk limits are configured to avoid liquidation.

How Trade Execution and Position Management Work

When a lead trader executes a contract trade, the action is broadcasted to all active followers within milliseconds. The system calculates the follower’s position size based on the selected copy mode. For example, if you use Proportional mode at 10% and your balance is 1,000 USDT, a 10,000 USDT position by the lead trader will result in a 1,000 USDT position in your account.

The following elements are automatically replicated:

• Direction (long or short)
• Leverage used by the lead trader (subject to your maximum allowed leverage setting)
• Entry and exit prices
• Take-profit and stop-loss levels
• Order type (limit, market, or conditional)

If the lead trader adjusts their position—such as adding to a long or moving a stop-loss—the system updates the follower’s position accordingly. Partial closures are also mirrored proportionally. All actions occur under real-time market conditions, meaning slippage may occur during high volatility.

Managing Risk and Customizing Copy Settings

Bybit provides several tools to help followers manage risk while copying contract trades. These include:

• Maximum Leverage Cap: Set a personal ceiling for leverage, overriding the lead trader’s leverage if it exceeds your limit.
• Stop Copying Loss: Define a total loss threshold (e.g., 20% of copied amount), after which copying stops automatically.
• Position Limit Control: Restrict the number of open copied positions at any time.
• Pause or Terminate Copying: Manually stop copying without closing existing positions.

These settings are adjustable at any time through the Copy Trading dashboard. It is advisable to set a lower leverage than the lead trader to reduce liquidation risk, especially in volatile markets. Also, monitor your margin balance closely, as contract trading involves funding fees and potential liquidations.

Monitoring Performance and Adjusting Strategy

After initiating a copy session, users can monitor performance through the Copy History and Statistics tabs. These sections display:

• Realized PnL from copied trades
• Current open positions and their status
• Execution accuracy (how closely your entries/exits matched the lead trader’s)
• Funding fees paid on copied perpetual contracts

You can compare multiple lead traders’ performance over time and decide whether to continue, modify, or terminate a copy relationship. Bybit also shows historical trade logs, allowing you to review each copied action, including timestamps and price differences due to slippage. This transparency helps in evaluating whether a lead trader’s strategy aligns with your risk tolerance.

Frequently Asked Questions

Can I copy only specific types of contracts, like only USDT-margined perpetuals?Yes. When browsing lead traders, you can filter by contract type. Each lead trader specifies which products they trade, and you will only copy trades within the same category (e.g., USDT-margined perpetuals). If a lead trader operates in multiple markets, you can still follow them, but all their contract trades in supported categories will be copied unless restricted by your settings.

What happens if the lead trader gets liquidated?If a lead trader is liquidated, the system will close your corresponding position at the same price or as close as possible. Your copied position follows the same risk trajectory, so if your leverage and margin are insufficient, you may also face liquidation. It is crucial to maintain adequate buffer margin and consider using a lower leverage cap than the lead trader.

Do I pay additional fees for using copy trading?No. Bybit does not charge extra fees for using the copy trading feature. You pay the standard taker/maker fees and funding rates applicable to futures contracts. These fees are deducted from your account just like in regular trading. The lead trader does not receive any direct payment from followers.

Can I manually close a copied position?Yes. You retain full control over your positions. You can manually close, reduce, or adjust any copied position at any time. However, if the lead trader later closes their position, the system will attempt to close yours again, which could result in a zero or negative position. To prevent conflicts, consider pausing copying before making manual adjustments.