Bybit Futures Tutorial: From Account Setup to Your First Trade

Creating Your Bybit Account and Initial Setup

1. Visit the official Bybit website and click on the 'Sign Up' button located at the top right corner. Provide a valid email address and create a strong password. Confirm your registration by verifying your email through the link sent to your inbox.

2. Enable two-factor authentication (2FA) immediately after account creation. Download an authenticator app like Google Authenticator or Authy, scan the QR code provided by Bybit, and input the generated code to secure your account.

3. Complete identity verification (KYC) if required for higher withdrawal limits or access to specific features. Upload a clear image of your government-issued ID and a selfie holding the document. Processing usually takes a few hours to one business day.

4. Navigate to the 'Assets' section and familiarize yourself with the dashboard. Check available deposit methods including USDT, ETH, BTC, and other supported cryptocurrencies via wallet transfer.

5. Always store your API keys securely if generated, and never share them with third-party platforms unless absolutely necessary and trusted.

Understanding the Futures Trading Interface

1. Switch to the 'Derivatives' tab and select 'USDT Perpetual' or 'Inverse Contracts' based on your preference. The USDT-margined contracts are beginner-friendly due to stable collateral value.

2. Observe the main components of the trading interface: order book, price chart, funding rate, mark price, and position size selector. These elements help assess market sentiment and execute informed trades.

3. Choose between 'Cross' and 'Isolated' margin modes. Cross margin uses your entire wallet balance as collateral, reducing liquidation risk, while Isolated allows precise control over leverage and risk per position.

4. Adjust leverage using the slider or input field. Bybit allows up to 100x leverage on certain pairs. Higher leverage amplifies both gains and losses, so use it cautiously, especially as a beginner.

5. Study the liquidation price displayed below your position. This is the price at which your position will be automatically closed to prevent further losses. Monitor it closely during volatile market conditions.

Executing Your First Futures Trade

1. Deposit funds into your futures wallet. Go to 'Assets' → 'Transfer' and move cryptocurrency from your spot wallet to the futures account. Confirm the transfer before proceeding.

2. Select a trading pair such as BTC/USDT and decide on a direction: long (buy) if you expect the price to rise, or short (sell) if you anticipate a decline. Analyze recent price action and volume before making a decision.

3. Set your order type. Use a 'Market Order' for immediate execution at the current price, or place a 'Limit Order' to enter at a specific price level. Input the contract size or USDT amount you wish to trade.

4. Review the estimated margin and potential profit/loss shown in the order panel. Confirm the details and click 'Buy/Long' or 'Sell/Short' to open the position.

5. Monitor your open position under the 'Positions' tab. You can set take-profit and stop-loss orders to automate exit points and manage risk without constant monitoring.

Frequently Asked Questions

What is the difference between USDT-margined and inverse futures on Bybit?USDT-margined futures use stablecoins as collateral, making profit and loss calculations straightforward in fiat-equivalent terms. Inverse futures are margined in cryptocurrency like BTC or ETH, which introduces volatility in margin value even if the trade direction is correct.

How does funding rate affect my futures position?The funding rate is exchanged between long and short traders every 8 hours. If you hold a long position when the rate is positive, you pay funding to shorts. If negative, you receive payment. It reflects market bias and can impact holding costs over time.

Can I close part of my futures position on Bybit?Yes. Bybit allows partial closures. You can reduce your position size manually by placing an opposing order for a fraction of the original amount. The remaining position continues to be active with adjusted entry and margin values.

What happens if my futures position gets liquidated?Upon liquidation, Bybit automatically closes your position to prevent further losses. The insurance fund covers any negative balance, so you cannot owe more than your initial margin. A liquidation fee may apply based on the contract type and size.