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Understanding US Stock CFDs on TradFi (MT5)Bybit TradFi (MT5) allows you to trade on the price movements of US-listed companies without owning the underlying shares. How Do They Work?A Contract for Difference is a financial derivative p...
Mark Price Calculation (Perpetual Contract)Bybit uses the Dual-Price mechanism to prevent traders from falling victim to market manipulations. Due to market manipulations, the market price on a futures exchange may deviate significantly from ...
How to Use Copy Trading BonusBybit. Use Your Copy Trading Bonus for Trading BotHead to the Trading Bot creation page, set the parameters, and Use Bonus. Loss Coverage vouchers cannot be used with Trading Bot bonuses. Enter th...
Agreement for Margin Staked SOLBybit Technology Limited (“Bybit”, “we”, “us” or “our”). This Agreement forms a binding agreement between Bybit and you and serves to supplement our Terms of Service found at https://w...
How to Get Started with Paradigm API TradingBybit. For assistance, please contact your institutional manager or email us at institutional_services@bybit.com.Enable Google 2FA. Create Your API KeyMainnet account settings URL: https://www.bybit.c...
Maintenance Margin (USDT Contract)Maintenance Margin is essential for sustaining a position in trading. This article will delve into the calculation process specifically for USDT Perpetual contracts.What is the Maintenance Margin?Maintenance Margin is the minimum amount of margin a trader must maintain in their position or account to continue holding a position. When unrealized losses cause the position margin in a position or account to fall below the required maintenance margin level, liquidation will be triggered. As traders hold larger contract values (position value + order value), the maintenance margin required will also increase by a fixed percentage as the contract value rises to a specific level. Each trading pair has its maintenance margin base rate, which adjusts according to changes in the risk limit tiers. For example, when you open a BTCUSDT position with a position value of 2,000,000 USDT or below, the maintenance margin rate (MMR) required for the position is 0.5% of the position value. If the position value increases to 2,600,000 USDT, the MMR required will also increase to 0.56% of the position value. For more details regarding risk limits, please refer to our guide here. Calculation of Maintenance Margin Rate (MMR)The Maintenance Margin Rate (MMR) for each position is determined using a tier-based calculation according to the margin level of the position value. Any excess beyond a particular tier is subject to the calculation based on the MMR of the new tier. IllustrationThe table below shows the margin parameters of XYZUSDT contracts. TierRisk Limit (USDT) Maintenance Margin Rate Required 10 - 1,0002%2>1,000 - 2,0002.5%3>2,000 - 3,0003%4>3,000 - 4,0003.5%5>4,000 - 5,0004% Assuming a trader enters a long position of 100 contracts with 10x leverage at 35 USDT, the contract’s position value would be 3,500 USDT. Position Value = Contract quantity x Average Entry Price = 100 x 35 = 3,500 USDT. Initial Margin = Position Value / Leverage = 35 x 100 / 10 = 350 USDT Maintenance Margin = Position Value x MMR = (1,000 x 2%) + (1,000 x 2.5%) + (1,000 x 3%) + (500 x 3.5%) = 92.5 USDT This means that the position can withstand a maximum unrealized loss (calculated using Mark Price) of 257.5 USDT (350 USDT - 92.5 USDT) before liquidation takes place.Formula Now that you understand how the maintenance margin is calculated, as seen in the illustration above, the calculation can be quite tedious when dealing with large position values. Therefore, for the sake of simplicity, we can use the following formula to calculate the position maintenance margin.Position Value = Contract Size x Average Entry PriceMaintenance Margin (MM) = (Position Value x MMR) - Maintenance Margin Deduction whereas,MM Deduction on Tier n = Risk Limit on Tier n-1 x (Difference between MMR on Tier n and Tier n-1) + MM Deduction on Tier n-1 The MMR required for each risk limit tier and the Maintenance Margin Deduction amount can be easily found on the Margin Parameters page.ExamplesThe table below shows the Margin Parameters for ETHUSDT. TierRisk LimitsMax. LeverageMaintenance Margin RateMaintenance Margin Deduction10 - 100,000252%02>100,000 - 200,000202.5%100,000 x (0.5%) + 0 = 5003>200,000 - 300,00016.673%200,000 x (0.5%) + 500 = 1,5004>300,000 - 400,00014.293.5%300,000 x (0.5%) + 1,500 = 3,0005>400,000 - 500,00012.54%400,000 x (0.5%) + 3,000 = 5,000 *The above table is merely an illustration and does not represent actual margin parameters. Please always refer to this page for the most updated margin parameters. Example 1 Trader A uses 10x leverage and opens a long position of 100 ETH at a price of 4,000 USDT. Position Value = 100 x 4,000 = 400,000 USDT (Tier 4)Initial Margin = 400,000 / 10 = 40,000 USDT Maintenance Margin = 400,000 x 3.5% - 3,000 = 11,000 USDT This means the position can withstand a maximum unrealized loss of 29,000 USDT (40,000 USDT - 11,000 USDT) before liquidation is triggered.Example 2Trader B utilizes 10x leverage and opens the ETHUSDT long position of 50 ETH at 4,000 USDT, while simultaneously having a buy limit order for 50 ETH at USDT 3,000. Position Value = 50 ETH x 4,000 = 200,000 USDT (Tier 2)Position Maintenance Margin = 200,000 x 2.5% - 500 = 4,500 USDTOrder Maintenance Margin = 50 ETH x 3,000 x 3.5% = 5,250 USDTTotal Maintenance Margin Required = 4,500 + 5,250 = 9,750 USDT. As a result, we can see that when an order is not filled, the order maintenance margin is calculated based on the corresponding MMR of the tier determined by the (position value + order value) instead of the tiered-based calculation. The MMR required for the tier of 200,000 USDT position value + 150,000 USDT order value is 3.5%. Assuming the buy order is now filled. The total maintenance margin required has now become: Average Entry Price = [(50 x 4,000) + (50 x 3,000)] / 100 = 3,500 USDTPosition Value = 100 ETH x 3,500 = 350,000 USDT (Tier 4)Initial Margin = 350,000 / 10 = 35,000 USDTMaintenance Margin = 350,000 x 3.5% - 3,000 = 9,250 USDT After the order is filled, the overall maintenance margin required is reduced to 9,250 USDT. This means the position can withstand a maximum unrealized loss of 25,750 USDT (35,000 USDT - 9,250 USDT) before the liquidation is triggered.ConclusionUnderstanding the calculation process for both position and order maintenance margins is essential for traders to manage their risk effectively on Bybit. By comprehending how these margins are calculated, traders can make informed decisions to reduce liquidation risk and optimize their trading strategies....
Perpetual & Futures Contract: Fees ExplainedBybit's stringent listing requirements, it will be delisted. Any open positions will be automatically closed before delisting. Positions closed due to delisting will be settled with a fixed settle...
FAQ — Dollar-Cost-Averaging (DCA) BotBybit?Currently, DCA trading is supported on our Spot platform. What tokens does Bybit support for creating my DCA Bot?Currently, USDT and USDC are supported. Please note that one DCA bot canno...
Order Cost (Perpetuals & Futures Trading)Bybit supports three (3) primary order placement methods: Order by Quantity:This is the default order placement method, you can input the contract quantity you wish to buy or sell. For Inverse contra...
Terms and Conditions for Unified Trading AccountBybit Technology Limited (the “Company”, “we”, “us” or “our”). If you apply for a Unified Trading Account (“UTA”) through our Site, you agree that you will be bound by these Suppl...