What are Bybit Futures Contracts?

Introduction to Bybit Futures Contracts

A futures contract is an agreement to buy or sell a particular underlying asset at a predetermined price at a specified time in the future. 

Using the futures contracts of Bitcoin as an example to illustrate this concept:

Both buyer and seller come to an agreement on the delivery of 5 BTC at the price of $20,000 on Dec 31, 2020. On the settlement date, Dec 31, 2020, the seller has the obligation to sell 5 BTC to the buyer at $20,000 regardless of the market condition. Conversely, the buyer also has the obligation to buy 5 BTC at $20,000 regardless of the spot price of BTC. Buyers and sellers may choose to close their exposure anytime before the settlement date.

For Bybit inverse futures, the contract value is calculated in USD equivalent and settled in BTC. For example, when BTCUSD is at $10,000, entering a long position of 20,000 BTCUSD contracts is equivalent to holding a 2 BTC long position. To know more about Inverse Contracts, please click here. 

Bybit Futures Specification

Contract Size: 1 contract is worth 1 USD

Settlement Type: Cash Settlement in BTC

Trading Fee: 0.075% for taker, -0.025% for maker

Liquidation: Mark Price to trigger liquidation. However, from 07:30:00 to 08:00:00 UTC on the settlement date, liquidation will be triggered when either the mark price or expected settlement price reaches the liquidation price. Click here for more details.

Highest Bid Price: Last Traded Price * (1+5%)

Lowest Ask Price: Last Traded Price * (1-5%)

Click here for more details regarding the price limit.

Listing & Settlement Date: 

Contract Expiry Time: 08:00:00 UTC on the settlement date

Settlement Fee: 0.05%. Click here for more details

For more contract specifications, please click here.

Why Trade Bybit Inverse Futures?

• Shared margin with BTCUSD perpetual contracts: One single BTC trading account to trade across perpetual and futures contracts
  
  
• Shared insurance fund with perpetual contract: Bybit futures contract will share the existing insurance fund built by the BTCUSD perpetual contract
  
  
• One-way mode and hedge mode both supported: Traders can choose to hold either one-way position or hedging long and short positions. Locked long and short positions within the same futures contracts (cross margin) won’t be liquidated
  
  
• No funding fee involved: You won’t pay or receive any funding fee while holding a position.

FAQ for Bybit Inverse Futures

• To find out more about the frequently asked questions (FAQ) regarding futures contracts, please click here

How to use the inverse trading platform? 

• For more information on how to use the inverse platform, please refer to our Bybit user guide - Inverse perpetual platform
  

Bybit highly values all suggestions and feedback for our futures contracts. To submit your suggestions or feedback, please visit here.