Bybit supports placing orders by order cost. Order cost is the total margin required to open a position. In the order zone, traders can click Order by Cost in the quantity column to switch, and then enter the custom amount they want to invest.

 

 

                                                              (On Desktop)                                                                  

   

                                                              (On Mobile App)

 

Please note the following:

— Currently, only USDT Perpetual Contracts hedging mode are supported.
— Order by Cost is not supported once you have upgraded your Derivatives account to Unified Margin Account.
— Only applicable to Limit Order and Market Order.
— Order by Qty is the default mode. Please manually switch to Order by Cost if needed.

 

 

Calculation

The order cost entered by traders will be used to calculate the initial margin required, as well as the taker fees for opening and closing positions. 

Based on the direction of your position — long or short — the formulas used to calculate the order cost of the Limit Order and Market Order will be different.

 

Long Positions

Formula

Order Cost = Initial Margin + Fee to Open Position + Fee to Close Position

• Initial Margin = (Order Price × Order Quantity) / Leverage

• Fee to Open Position = Order Quantity × Order Price × Taker Fee Rate

• Fee to Close Position = Order Quantity × Bankruptcy Price × Taker Fee Rate

• Bankruptcy Price for Long Position = Order Price × ( Leverage − 1) / Leverage

 

Example

Trader A opens a long position of 1 BTC at 50,000 USDT with 10x leverage.

The order cost is calculated as follows:

• Initial Margin = (50,000 × 1 ) / 10 = 5,000 USDT
• Fee to Open Position = 1 × 50,000 × 0.055% = 27.5 USDT
• Fee to Close Position = 1 × 50,000 × (10 − 1) / 10 × 0.055% = 24.75 USDT

 

In this case, order cost = 5,000 + 27.5 + 24.75 = 5,052.25 USDT

Traders who place orders by order cost can calculate the corresponding order quantity according to the following calculation. 

Revisiting Trader A’s case:

Order Quantity = Order Cost × Leverage / [Order Price × (2-way taker fee × Leverage + 0.99945)]

                            = 5,052.25 × 10 / [50,000 × (0.0011 × 10 + 0.99945)]

                            = 1 BTC

 

Short Positions

Formula

Order Cost = Initial Margin + Fee to Open Position + Fee to Close Position

• Initial Margin = (Order Price × Order Quantity) / Leverage

• Fee to Open Position = Order Quantity × Order Price × Taker Fee Rate

• Fee to Close Position = Order Quantity × Bankruptcy Price × Taker Fee Rate

• Bankruptcy Price for Short Position = Order Price × ( Leverage + 1) / Leverage

 

Example

Trader B opens a short position of 1 BTC at 55,000 USDT with 10x leverage.

The order cost is calculated as follows:

• Initial Margin = (55,000 × 1) / 10 = 5,500 USDT
• Fee to Open Position = 1 × 55,000 × 0.055% = 30.25 USDT
• Fee to Close Position = 1 × 55,000 × (10 + 1) / 10 × 0.055% = 33.275 USDT

 

In this case, order cost = 5,500 + 30.25 + 33.275 = 5,563.525 USDT

Traders who place orders by order cost can calculate the corresponding order quantity according to the following calculation. 

Revisiting Trader B’s case:

Order Quantity = Order Cost × Leverage / [Order Price × (2-way taker fee × Leverage + 1.00055)]

                            = 5,563.525 × 10 / [55,000 × (0.0011 × 10 + 1.00055)]

                            = 1 BTC

 

Note: The following criteria must be met in order to place an order successfully. 

1) The Order cost (Initial Margin + Two-Way Taker Fee) required has to be smaller than or equal to the available balance

2) Under cross margin mode, in the event that there is opened position, (1.2 x maintenance margin (MM) of open position + unrealized loss of position) has to be smaller than or equal to the available balance