Q) What is a USDT perpetual contract?
The USDT perpetual contracts use USDT as the base currency. Traders need to confirm traded quantities in terms of BTC, and then use USDT to calculate margin, profit and loss.
Q) What type of coins do I need to deposit to trade USDT perpetual contracts?
Trading USDT perpetual contracts require the use of USDT coins. However, traders may deposit any cryptocurrencies currently supported on the Bybit platform and utilize the Asset Exchange function to obtain the required asset needed to trade the respective trading pairs.
To find out how to use the Assets Exchange function, please click here.
Q) Can I hedge my position when trading USDT perpetual contracts?
Yes, you can. For example, traders can hold a Buy Long and Sell Short position simultaneously. However, the hedging will only occur when traders manually switch the margin mode to cross margin. To find out how to perform this switch, please visit here
Q) What is the highest leverage that I can use when trading USDT perpetual contracts?
Q) What are the order limits for USDT contracts trading pairs?
|Min Order Size||0.001 BTC||0.01 ETH||0.01 BCH||0.1 LTC||0.1 LINK||0.1 XTZ||1 ADA||0.1 DOT||0.1 UNI|
|Max Order Size||100 BTC||1,000 ETH||1000 BCH||10,000 LTC||100,000 LINK||
The update is applicable to all new orders. For existing active orders, the updated limits will not be applied unless the orders are adjusted.
Q) Market orders for USDT perpetual contracts have a maximum order execution deviation price for the respective contract
|Max price deviation||BTCUSDT||ETHUSDT||BCHUSDT||LTCUSDT||LINKUSDT||XTZUSDT||ADAUSDT||DOTUSDT||UNIUSDT|
|100 USD||10 USD||10 USD||2 USD||0.2 USD||0.2 USD||0.02 USD||1 USD||0.2 USD|
Q) What is the largest position size that I can hold for USDT perpetual contracts?
Q) How many active limit and conditional orders can I place on the USDT platform?
Active limit orders = up to 500 orders, but only 50 will be displayed inside your Active tab and trading chart
Conditional orders = Up to 10 orders.
Q) What is the lowest/highest price I can set for my orders on Bybit?
Lowest Price = 10% of Last Traded Price (LTP)
Highest Price = $1,000,000
Q) Will increasing my leverage also increase my open position's unrealized P&L?
No, it will not. For more information, please visit our help center article on Unrealized P&L and unrealized P&L% of the position (USDT)
Q) What is a Quick trading function?
This is a dedicated function available on the price chart to allow all traders to quickly execute their trading strategies in the rapidly fluctuating market.
Q) What are the types of orders I can place in the quick trading function?
Quick Open, Quick Close and Quick Reversal
Q) What is a Quick Open function?
It serves to allow traders to pre-set the size of the contracts and they will be able to open a Buy/Sell position with a single one-click via a market order. To understand how to use this function, please visit here
A market order will be executed at the best available price in the order book. The actual execution price might differ from the price shown in the quick entry zone.
By using this function, clicking on Buy or Sell will cause traders to open a position or add position size in the same direction only and will not close the opposite direction position.
Q) What is a Quick Close function?
It serves to allow traders to quickly close their Buy/Sell position with a single one-click via a market order. To understand how to use this function, please visit here
A market order will be executed at the best available price in the order book.
Q) What is a Quick Reversal function?
It allows traders to quickly reverse their position's trading direction by firstly closing their existing open position and reopening a new position in the opposite direction with the same order quantity. Both closing and opening orders are executed via market orders.
To understand how to use this function, please visit here
Q) How to calculate the average entry price (AEP) for USDT perpetual contracts?
Average entry price = total contract value in USDT/total quantity of contracts
Total contract value in USDT = [(Quantity1*Price1) + (Quantity2*Price2) + (Quantity3*Price3)....]
A trader bought 1 BTCUSDT contract at 9000 USD and another 2 BTCUSDT contract at 10,000 USD
Average entry price = (1*9000+2*10000)/(1+2) = 9666.66 USD (Truncate at 8 decimal point)
Note: This calculation is only meant for illustration purposes. Traders are advised to always refer to the figures shown on their Bybit platform page.
Q) How does the shared insurance fund for USDT perpetual contracts works?
Only BTCUSDT contracts have access to 100% of the insurance fund. On the other hand, other altcoins USDT contracts may only utilize up to 20% of the insurance fund per 24 hours. This restriction is reset daily at 0000 UTC. For example
There are 1,000,000 USDT inside insurance fund. If BTCUSDT and ETHUSDT suffered a contract loss of 400,000 USDT and 300,000 USDT respectively, the insurance fund will fully absorb the losses for BTCUSDT but only up to 200,000 USDT (20% of 1,000,000 USDT) for ETHUSDT and the remaining 100,000 USDT losses will be absorbed by other traders via the ADL mechanism.
Q) Why is there a difference in order cost between Buy Long and Sell Short orders inside the order placement zone?
There are 2 reasons to explain the differences.
Reason 1: Difference in bankruptcy price between a Buy Long and a Sell Short order
- Buy Long direction = Bankruptcy price below entry price = higher fee to close* = higher order cost
- Sell Short direction = Bankruptcy price above entry price = lower fee to close* = lower order cost
*Fee to close refers to an amount of margin set aside by the system to ensure a position will have sufficient fees to close at its theoretical worst-case scenario (liquidation executed at bankruptcy price). This is not the absolute final amount and any excess will be returned to the trader after closing the position.
Reason 2: Differences in predicted order execution method (specific to limit orders)
- When the order price is set at a price point better than the Last Traded Price (Buy Long = Lower, Sell Short = Higher) = orders will be pending for execution inside the order book
- The system will use the order price to calculate the fee to open
- When the order price is set at a price point worse off than the Last Traded Price (Buy Long = Higher, Sell Short = Lower) = orders will immediately execute upon placement
- The system will use the estimated best available market price in the order book to calculate the fee to open
Q) What is the difference between using Last and Mark price to trigger TPSL and/or conditional orders?
Last (Last Traded Price, LTP)
|May have slightly better control and estimation of the eventual order execution price.||May not be triggered before the liquidation of the open position||Setting up Take Profit orders|
|Mark (Mark Price)||Ensure that such orders will always trigger before the liquidation of the position.||May experience price slippages.||Setting up Stop Loss orders|
Q) Why is my conditional order successfully placed but immediately rejected after it has been triggered?
There are various reasons why conditional orders may be rejected after being triggered. For more details, please visit here
Q) What are the order types that can be placed on the Bybit platform and what are their differences?
|Order Types||Variables needed to place an order||Advantages||Limitations||Uses|
Leverage, Contract quantity
|Immediate order fulfillment at the best available prices inside the order book.||Does not guarantee order execution price||
Orders to enter or exit the market immediately
|Limit order||Leverage, Contract quantity, Order price||
Ability to place an order at a price point better than best bid/ask prices OR immediate order fulfillment up to order price.
|Does not guarantee order execution||
Placement of maker orders.
Exit orders to take profit
|Conditional order||Leverage, Contract quantity, Trigger price, Order Price||Ability to place a limit/market order only when the trigger price is met||Order will not be placed unless the trigger price is met||
Take Profit or Stop Loss via the TPSL function
Stop-entry orders to trade a breakout
Q) What is a trailing stop/trailing profit?
Bybit provides another exit option, known as Trailing Stop, which is a more flexible variation of a normal exit order. It is designed to enable a position to remain open as long as the market price is moving in a profitable direction but closes via a market order if the market price changes direction by a pre-determined price. It can be used as a trailing stop loss or trailing profit.
Example of trailing stop loss:
A trader opens a long position of BTCUSD contracts at 8,000 USD, and set a trailing distance of 500 USD.
- If the last traded price never exceeded 8,000 USD, the trailing stop will be triggered at 7,500 USD just like a normal stop loss.
- If the last traded price moves to 9,000 USD, the trailing stop price will automatically be adjusted upward by 1,000 USD (stop price can be adjusted by every 0.5USD), and the trailing stop will be triggered at 8,500 USD.
- Stop loss will be triggered only if there is any retracement of 500 USD from the highest price reached. (As seen from the diagram example below)
Trailing profit is achieved by setting an activation price for the trailing stop order. What it does is that the trailing stop order will only be placed when LTP reaches the activation price and subsequent execution logic will follow the diagram above.
To understand how to set up a trailing stop, please click here
Q) How to ensure that I will always open or close my position as a maker order?
This can be achieved by using a limit order placed at a price point equal or better than the best bid/ask prices stated inside the order book + selection of post-only function. For more information, please click here
Q) What is the use of close-on-trigger?
Specifically available as an additional option to conditional orders, the “Close On Trigger” function seeks to execute as a closing order that guarantees its execution regardless of margin requirements. For more information, please click here
Q) What is the difference between order history and trade history?
The trade history represents the historical record of actual position transactions, and the order history represents the record at the time of the historical order placement (Can be executed or non-executed order).
Q) If I have trading bonuses and deposits inside my account balance, when opening a position, what will the system use to pay for the order margin?
The system will use your deposits first to pay for the order margin. However, after closing the position, if there are any realized losses, it will be deducted from your trading bonuses first before deducting from your deposits.
Q) What is time in force (TIF): GTC IOC FOK?
When setting an order, a trader can choose different 'Time in Force' strategies to set the effective execution method of the order. Order execution strategies allow traders to have more control over their trading strategies. For more information, please click here
Q) Why are all of my ADL LED lights illuminated (depicting a high ADL ranking) even though I am using relatively low leverage and having a relatively low P&L%?
ADL ranking is calculated using profits percentage and effective leverage and the ranking is relative to the traders holding the same direction as your current position. What this means is that the other traders holding the same direction may either be in a losing position or making lesser profit percentages as compared to your existing position.
ADL will only be activated if contract losses cannot be fully covered by the insurance fund. Therefore, if the insurance fund is sufficient, the likelihood of ADL happening is also greatly reduced.
Q) How can I reduce my ADL ranking?
1) Lowering the leverage may lower the ADL ranking in real-time.
2) Partial or fully closing your position. Partial closing the position does not lower the ADL ranking but it reduces the number of contracts that are exposed to ADL risk.