What are Bybit Options?
Bybit offers European-style cash settled Options that can only be exercised when the contract expires.
There are two types of Options: Calls and Puts.
- Call Option — gives the buyer the right, but not the obligation, to purchase an asset at a set price on an expiration date.
- Put Option — gives the buyer the right, but not the obligation, to sell an asset at a set price on an expiration date.
What is the difference between Options and Futures?
Options and Futures are derivative instruments that allow traders to hedge against market volatility.
The key differences between Options and Futures are as follows:
- Options give the contract holder the right, but not the obligation, to buy or sell the underlying asset at a specific price on a specific date.
- Futures require the contract holder to buy or sell the underlying asset on a specific date in the future.
What kinds of Options contract types does Bybit offer?
The types of Options contracts offered by Bybit include: Weekly, Bi-weekly, Monthly, Bi-monthly, and Quarterly.
When are Options contracts settled?
Options contracts are settled at 8AM UTC on the Friday of the expiration week.
Are there any fees associated with Bybit Options?
In Option trading, three types of fees — trading fee, delivery fee and liquidation fee — may be involved.
To learn more about Bybit Option fees, please refer to Bybit Option Fees Explained.
What are the order limits for Options?
Please refer to the table below for details:
|
Minimum Order Quantity |
Maximum Order Quantity |
|
|
USDC Options |
0.01 BTC |
100 BTC |
What is the maximum position I can hold in Options trading?
Please refer to the table below for details:
|
Maximum Position Quantity |
|
|
USDC Options |
100 BTC |
Are there any limits on the order price setting of Options?
Yes. The lowest/highest prices that can be set are as follows:
|
Lowest Price (Sell) |
Highest Price (Buy) |
|
|
USDC Options |
Max (0.05% × Index Price, Mark Price − 1% × Index Price × Max [1, 4 × ABS (Delta)] |
Mark Price + 5% × Index Price × Max [1, 4 × ABS (Delta)] |
What is ATM (At-the-Money), ITM (In-the-Money) and OTM (Out-of-the-Money)?
|
Type of Option |
Relationship between delivery price and strike price |
ITM/ATM/OTM |
|
Call |
Delivery price > Strike price |
ITM |
|
Delivery price = Strike price |
ATM |
|
|
Delivery price < Strike price |
OTM |
|
|
Put |
Delivery price < Strike price |
ITM |
|
Delivery price = Strike price |
ATM |
|
|
Delivery price > Strike price |
OTM |
How to calculate the premium
An Options premium is the amount that the buyer must pay to the seller to obtain the right to the call or put option. The premium is calculated based on the order price and quantity.
To learn more about how to calculate the premium, please refer to Initial Margin and Maintenance Margin Calculations.
Can the regular margin and portfolio margin modes be switched?
Yes. To switch the margin mode, your USDC Derivatives Account needs to meet the following requirements:
- There are no positions in your USDC Derivatives Account.
- There are no active orders and conditional orders under your USDC Derivatives Account.
To qualify for portfolio margin, your USDC Derivatives Account needs to meet a minimum net equity of 10,000 USDC.
Under the portfolio margin, will the initial margin occupied by my position be less than that under the regular margin?
The proportion of initial margin (IM) in the account depends on the hedging relationship of all USDC perpetual contracts and options.
- If there are hedging positions, the IM under the portfolio margin will be lower than the IM under the regular margin.
- If all positions are in the same direction, the IM under the portfolio margin will be higher than that under the regular margin.
This is based on the calculation of different risk mechanisms in the two modes.
How do I deposit funds into my USDC account?
Please log in to your USDC Derivatives Account and click on Transfer In to transfer USDC from your Spot Account to your USDC Derivatives Account.
Using USDT to trade USDC options, you can convert the USDT in your Spot Account into USDC at the real-time exchange rate and transfer directly to your USDC Derivatives Account. Alternatively, you can also trade on the Bybit Spot Market to obtain your USDC.
Under what circumstances will I receive a risk notification for USDC Derivatives trading?
You may receive three (3) risk alert notifications via email as follows:
- When initial margin utilization of your USDC Derivatives Account has exceeded the risk limit (> 90%), you’ll receive an email to inform you that any orders that may increase your position size will be canceled if the initial margin utilization exceeds 100%. You will receive such warning emails no more frequently than every 24 hours.
- When the initial margin utilization of your USDC Derivatives Account has exceeded 100%, you’ll receive an email to inform you that any orders that may increase your position size have been canceled. You will receive such warning emails no more frequently than every 12 hours.
- When maintenance margin utilization of your USDC Derivatives Account has exceeded the risk limit (> 70%), you’ll receive a margin call by email to inform you to deposit more USDC to avoid liquidation. Please note that you will receive such warning emails no more frequently than every 15 minutes.
Please note that if the MM of your USDC Derivatives Account hits 70% in a short period of time due to drastic market fluctuations, you will not receive a risk alert from IM (lists 1 and 2 above).
How to manage position risk in a USDC Option
You can manage position risk through Subaccounts. The P&L of Subaccounts is segregated from the Main Account. Currently, the transfer of assets between Subaccounts and Main Accounts is only done via your Spot Account.
For more details about Subaccounts, please refer to the following two articles:
Bybit user guide — Subaccount settings