How to trade Bitcoin futures on Bybit? (Derivatives trading)

Account Setup and Verification

1. Visit the official Bybit website and click on “Sign Up” to create a new account using an email address or phone number.

2. Complete the basic KYC verification by uploading a government-issued ID and a selfie holding that document.

3. Enable two-factor authentication (2FA) through Google Authenticator or a hardware security key for enhanced account protection.

4. Deposit funds into your Bybit wallet using USDT, BTC, or other supported stablecoins via on-chain transfer or internal wallet transfer.

5. Navigate to the Derivatives section and select “USDT Perpetual” to access Bitcoin futures trading pairs.

Understanding Contract Specifications

1. Bitcoin USDT perpetual contracts are quoted in USDT and settled in USDT, eliminating exposure to BTC price volatility during settlement.

2. The minimum order size is 0.001 BTC, and the tick size is $0.5 for price increments.

3. Leverage ranges from 1x to 100x, adjustable per position, with higher leverage increasing both profit potential and liquidation risk.

4. Funding rate is exchanged every 8 hours between long and short holders based on the spread between the mark price and the index price.

5. Mark price incorporates multiple exchange spot prices and funding data to prevent manipulation during volatile market conditions.

Placing and Managing Orders

1. Choose between Market, Limit, Stop Market, Stop Limit, Take Profit Market, and Take Profit Limit order types depending on execution priority and risk control needs.

2. Set entry price, quantity, leverage, and position mode (One-way or Hedge Mode) before confirming the order.

3. Use the “Position” tab to monitor open positions, unrealized PnL, margin ratio, and estimated liquidation price in real time.

4. Adjust leverage dynamically without closing the position, though changes apply only to new orders unless modifying existing ones manually.

5. Trigger partial or full position closure using trailing stop, conditional orders, or manual market execution when targets are met.

Risk Management Tools

1. Configure auto-deleveraging parameters to define acceptable drawdown thresholds before forced position reduction begins.

2. Activate price alerts to receive notifications when BTC/USDT reaches predefined levels across web, mobile, or email channels.

3. Utilize the “Isolated Margin” setting to limit risk exposure to only the allocated margin for each trade.

4. Review historical liquidation heatmaps and funding rate trends to anticipate shifts in market sentiment and positioning behavior.

5. Monitor the “Insurance Fund Balance” dashboard to assess system-wide solvency and counterparty risk mitigation capacity.

Frequently Asked Questions

Q: Can I hold a Bitcoin futures position indefinitely?Yes. Perpetual contracts have no expiration date but require ongoing funding payments every 8 hours.

Q: What happens if my margin ratio hits 100%?Your position enters liquidation territory and may be automatically closed at the bankruptcy price to prevent negative equity.

Q: Is cross-margin mode safer than isolated margin?Cross-margin uses your entire wallet balance as collateral, which increases survival chance during drawdowns but exposes all assets to a single position’s failure.

Q: How is the mark price calculated on Bybit?The mark price combines the BTC/USDT index price from major spot exchanges with a decaying funding basis to reflect fair value and reduce manipulation susceptibility.