how to margin trade on bybit

Take advantage of increased profit potential and elevated market risks by using leverage in margin trading on Bybit's easy-to-follow platform.

Oct 26, 2024 at 04:50 pm

How to Margin Trade on Bybit

Margin trading on Bybit allows you to trade with leverage, which can amplify your potential profits but also increase your potential losses. Here's a step-by-step guide on how to do it:

1. Create an Account

• Visit Bybit's website and register for an account.
• Complete the verification process to upgrade your account.

2. Enable Margin Trading

• Click on "Assets" in the top menu and select "Margin."
• Enable margin trading by clicking "Enable."
• Choose the type of margin account you want (isolated or cross).

3. Transfer Funds

• Transfer funds from your Spot Account to your Margin Account.
• Margin trading on Bybit is only available for USDT, so ensure you have enough USDT in your Spot Account.

4. Open a Margin Order

• Go to the "Trade" page and select the trading pair you want to trade.
• Choose "Margin" as the trading mode.
• Enter the amount you want to borrow and the leverage you want to use.
• Click "Buy Long" or "Sell Short" to open the order.

5. Monitor Your Position

• Track your open margin positions in the "Positions" tab on the "Trade" page.
• Monitor your margin level, which indicates your risk of liquidation.
• If your margin level drops below a certain threshold, you may receive a margin call.

6. Close Your Position

• To close a margin position, simply close the order like you would a normal spot order.
• You can either take profit, stop loss, or close at market price.
• When you close the position, your borrowed amount is returned, and any profits or losses are settled.

7. Withdrawal

• Once you have closed all your margin positions and repaid any borrowed funds, you can withdraw your funds from the Margin Account to your Spot Account.

Tips for Margin Trading:

• Always use stop-loss orders to limit your potential losses.
• Only trade with a small portion of your funds.
• Be aware of the risks involved in margin trading and never trade with more leverage than you can afford to lose.