How to use isolated margin mode on Bybit?

Understanding Isolated Margin Mode

1. Isolated margin mode allocates a fixed amount of collateral exclusively to a single position, preventing cross-contamination between open trades.

2. This mode allows traders to precisely control risk exposure per contract, making it ideal for multi-position strategies with varying volatility profiles.

3. Losses are strictly limited to the designated margin—no automatic drawdown from other positions or account balance occurs.

4. Bybit displays real-time margin utilization percentage next to each isolated position, enabling instant assessment of liquidation thresholds.

5. Users can manually adjust the isolated margin amount at any time before liquidation, either adding funds to extend buffer or withdrawing excess after partial profit realization.

Navigating Margin Settings on Bybit App

1. Launch the official Bybit mobile application and log in using verified credentials.

2. Tap the bottom navigation bar’s Trade icon to access market interfaces.

3. Select Derivatives to enter the derivatives trading section.

4. Choose a specific perpetual or futures contract pair such as BTC/USDT or ETH/USDT.

5. In the top-right corner of the trading interface, tap the gear-shaped Settings button to open margin configuration options.

Activating and Managing Isolated Positions

1. Within the settings menu, locate the Margin Mode toggle and select Isolated.

2. Confirm activation by tapping Apply, which immediately isolates all subsequent orders on that contract.

3. Each newly opened position will display its dedicated margin value, entry price, leverage multiplier, and estimated liquidation price.

4. To modify margin for an active isolated position, long-press the position row in the Positions tab and select Adjust Margin.

5. Input the new margin amount in USDT or supported base assets; the system recalculates leverage and liquidation level instantly.

Risk Parameters and Liquidation Mechanics

1. Liquidation triggers when the position’s maintenance margin ratio falls below 100%, calculated as (Wallet Balance / Used Margin) × 100%.

2. Bybit applies dynamic funding rate adjustments every eight hours, directly impacting isolated margin health during prolonged holding periods.

3. The platform enforces strict margin call alerts at 110% utilization—traders receive push notifications and in-app banners warning of imminent liquidation.

4. No partial liquidation occurs under isolated mode; the entire position closes upon breach of the maintenance threshold.

5. Post-liquidation, remaining margin—minus fees and insurance fund deductions—is credited back to the user’s UTA balance within 30 seconds.

Frequently Asked Questions

Q: Can I switch from isolated to cross margin without closing positions?A: Yes, Bybit permits switching margin modes for existing positions, but doing so converts the position into cross-margin context—collateral becomes shared across all open contracts.

Q: Does isolated margin support multiple collateral types like BTC or ETH?A: Only USDT and USDC are accepted as collateral for isolated margin positions on perpetual and inverse futures markets.

Q: Why does my isolated margin show different leverage than selected?A: Leverage dynamically adjusts based on current mark price and position size; displayed leverage reflects real-time effective exposure, not initial input.

Q: Are there additional fees for using isolated margin mode?A: No extra fees apply—trading fees remain identical to cross margin mode and depend solely on maker/taker status and VIP tier.