How to set up risk management rules on Bybit to cap my maximum daily loss?

Account-Level Loss Limit Configuration

1. Log into your Bybit account via web or mobile application using two-factor authentication.

2. Navigate to the “Assets” section, then select “Risk Management” from the left-side menu.

3. Choose “Daily Loss Limit” and toggle the feature ON to activate the control.

4. Enter a numeric value representing the maximum allowable net loss in USDT for the current trading day.

5. Confirm the setting with your email verification code or hardware wallet signature.

Per-Order Position Safeguards

1. Before submitting any derivative order, enable “Auto-Reduce” in the advanced order panel.

2. Set a fixed stop-loss price or percentage deviation from entry for each position manually.

3. Assign a maximum position size based on your total equity — for example, no more than 3% of available margin per trade.

4. Activate “TP/SL Only Mode” to prevent opening new positions once a predefined profit or loss threshold is reached.

5. Disable leverage adjustment during active positions to avoid unintended exposure amplification.

Session-Based Trading Quotas

1. Define session start and end times under “Trading Session Rules”, such as 00:00–23:59 UTC.

2. Input a hard cap on cumulative realized PnL deviation — e.g., -150 USDT triggers immediate auto-liquidation of all open positions.

3. Link the quota to your API key if using algorithmic tools, ensuring external scripts respect the same ceiling.

4. Enable “Pause All Orders” instead of cancel-only behavior when the daily loss threshold is breached.

5. Review historical session logs weekly to identify recurring slippage or timing-related drawdown patterns.

Notification and Enforcement Triggers

1. Configure SMS, email, and Telegram alerts at 70%, 90%, and 100% of the daily loss limit.

2. Assign distinct alert tones for partial breach versus full enforcement events.

3. Set “Grace Period Override” to zero seconds so no manual override is possible after limit activation.

4. Require biometric re-authentication to reset the daily counter before midnight UTC.

5. Monitor real-time balance delta via Bybit’s WebSocket feed to cross-validate backend enforcement accuracy.

Frequently Asked Questions

Q1. Does the daily loss limit apply to both spot and derivatives accounts separately?A1. Yes. Each account type maintains an independent daily loss counter. Spot balances and inverse/USDT-margined futures are tracked in isolation.

Q2. Can I modify the daily loss cap while a position is active?A2. Yes, but changes only take effect at the next UTC midnight rollover — active enforcement remains locked until then.

Q3. What happens if my unrealized loss exceeds the cap before any position is closed?A3. The system does not auto-close positions based on unrealized PnL alone; enforcement activates only upon realization via liquidation or manual close.

Q4. Is the loss calculation based on base currency or quote currency valuation?A4. All loss metrics are computed in USDT, regardless of whether the trading pair is BTC/USDT, ETH/USD, or XRP/USDT.