How to use the "Ladder Mode" on Bybit for scaling entries? (Position Sizing)

Ladder Mode Fundamentals

1. Ladder Mode is a structured entry technique supported natively on Bybit’s derivatives interface, enabling traders to place multiple limit orders at predefined price intervals without manual intervention.

2. Each order in the ladder sequence carries identical size and leverage settings but differs in execution price, forming a stepped entry profile aligned with anticipated support or resistance zones.

3. The mode operates exclusively within the USDT-margined perpetual contract environment and requires the account to be set to cross-margin mode prior to activation.

4. Unlike traditional grid strategies, Ladder Mode does not auto-reverse or close positions; it strictly executes long-only or short-only entries based on the selected direction.

5. Orders are submitted as post-only limit orders by default, ensuring they never cross the spread and avoiding unintended market impact.

Step-by-Step Configuration Process

1. Navigate to the Bybit trading dashboard, select a USDT perpetual contract such as BTC/USDT, then click the “Advanced Order” tab located beside the standard order panel.

2. Choose “Ladder Mode” from the dropdown menu under order types, which reveals three input fields: “Base Price”, “Price Step”, and “Number of Levels”.

3. Enter the Base Price—the highest (for long) or lowest (for short) price level where the first order will be placed—using real-time bid/ask data as reference.

4. Input the Price Step value in USDT or percentage terms; for BTC/USDT, a step of $200 or 0.3% is commonly used depending on ATR(14) readings.

5. Specify the Number of Levels between 2 and 10; setting more than 7 levels triggers an automatic warning about margin utilization exceeding 65% at current leverage.

Margin and Leverage Alignment

1. Before confirming the ladder, the system calculates total initial margin required across all pending orders and displays it next to the “Total Margin” label in real-time USD value.

2. Leverage must be pre-set at the contract level—not per order—and remains fixed for all ladder entries; modifying it mid-sequence invalidates the entire setup.

3. If cross-margin is enabled, the platform aggregates available balance across all open positions to cover potential margin calls, but each ladder order consumes isolated margin upon partial fill.

4. A red alert appears if the calculated maintenance margin ratio falls below 120% under worst-case partial fills, prompting adjustment of either step size or number of levels.

5. The system enforces a minimum position size per level equal to 0.001 BTC or its equivalent in other base assets, preventing micro-order fragmentation.

Risk Control Integration

1. After submitting the ladder, users may attach a single trailing stop to the aggregate position, not individual legs—this applies only after at least one level has been filled.

2. Stop-loss parameters cannot be assigned during ladder creation; they must be added separately via the “Positions” tab once the first leg is active.

3. Partial fills do not trigger re-pricing of unfilled orders; remaining levels retain their original price tags regardless of market movement.

4. All unfilled orders remain visible in the “Open Orders” section with status “Pending”, and can be canceled individually or in bulk using the “Cancel All Ladder Orders” button.

5. If price moves beyond the farthest ladder level before any fill occurs, the system automatically cancels all pending orders without user action.

Common Questions & Answers

Q: Can I mix long and short ladders for the same symbol?A: No. Bybit restricts one active ladder per symbol-direction combination. Attempting to launch a conflicting ladder returns error code “ERR_LADDER_CONFLICT”.

Q: Does Ladder Mode support time-based order expiration?A: Yes. Users may set TTL (Time-To-Live) between 1 hour and 7 days during submission; expired orders vanish silently without notification.

Q: Are ladder orders visible to other market participants?A: Yes. Each level appears as a standard limit order on the order book, exposing entry logic unless hidden via iceberg settings—which are unsupported in Ladder Mode.

Q: What happens if my margin balance drops below required level after partial fills?A: The system freezes new fills until margin recovers above 110% of required level; unfilled orders remain pending but inactive.