What are Bybit Options?

Bybit offers European-style cash-settled Options that can only be exercised when a 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’s 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 types of Options contract types does Bybit offer?

Bybit offers various Options contracts, including Daily, Bi-Daily, Tri-Daily, Weekly, Bi-Weekly, Tri-Weekly, Monthly, Bi-Monthly and Quarterly contracts.
 

 

 

What are the various expiration contract types offered by Bybit?
Bybit currently provides nine (9) expiration contract types for BTC-Options and ETH-Options: Daily, Bi-Daily, Tri-Daily, Weekly, Bi-Weekly, Tri-Weekly, Monthly, Bi-Monthly and Quarterly. We are continuously working on introducing new Options types. Stay tuned for updates.

 

 

 

When will the new Options contracts be listed?
Tri-Daily Options will be listed daily at 8AM UTC, while the rest will be listed every Thursday at 8AM UTC.

Please refer to the table below for more details (take BTC-Options as an example):

 

As shown in the table above, here are some Options expiration rules for your reference:

 

When the aforementioned Options contract expires on the same day:

• A weekly expiration will be replaced by a Tri-Daily expiration and no new Bi-Daily expiration will be added. Bi-weekly expiration will now become a weekly expiration and a new Bi-weekly expiration will be added. 
• A monthly expiration will be replaced by a Tri-Weekly expiration and no new Tri-Weekly expiration will be added. The Bi-Monthly expiration will now become a monthly expiration and a new Bi-Monthly expiration will be added.
• A quarterly expiration will be replaced by a Bi-Monthly expiration. No new Bi-Monthly expiration will be added. A new quarterly expiration will be added.

 

 

 

Are there any fees associated with Bybit Options?

With Options trading, three types of fees — trading fee, delivery fee and liquidation fee — may be incurred.

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:

 

 

 

 

What is the maximum position I can hold in Options trading?

Please refer to the table below for details:

 

*Institutional investors are allowed a higher maximum position quantity per contract. To learn more, please contact us at institutional_services@bybit.com.

 

Please note that each contract refers to a specific type, such as BTC-26AUG22-30000-C.

 

 

 

What is the Mark Price in Bybit Options?

On Bybit, the Mark Price is regarded as the fair value of an Options contract. The Implied Volatility (IV) of an Options contract is calculated from a volatility curve formed by the quotes of buyers and sellers in the Options market. Then, the option price is calculated using the IV as one of the parameters of the Black-Scholes model.

 

The Mark Price may not be the actual Options bid or ask price. However, traders can use the Mark Price as a reference price for trading. Observing the deviation of the bid or ask price from the Mark Price on the Option Chain, can help traders better make trading decisions. If the bid or ask price deviates significantly from the Mark Price, traders should avoid the corresponding trade to reduce the risk of loss.

 

Please note that the exercise price of an Option contract is based on the Option bid or ask price and not the Mark Price.

 

 

 

Are there any limits on the order price setting of Options?

Yes. The lowest/highest prices that can be set are as follows:

 

 

 

 

What is ATM (At-the-Money), ITM (In-the-Money) and OTM (Out-of-the-Money)?

 

 

 

 

Can the regular margin and portfolio margin modes be switched?

Yes. To switch to the margin mode, your USDC Derivatives Account needs to meet the following requirements:

1. There are no positions in your USDC Derivatives Account.

2. 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 1,000 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 your 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. 

By 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 it 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:

1. When the 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’ll receive such warning emails no more frequently than every 24 hours.
2. When the initial margin utilization of your USDC Derivatives Account has exceeded 100%, you’ll receive an email to inform you that orders that may increase your position size have been canceled. You’ll receive warning emails no more frequently than every 12 hours.
3. 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’ll receive such warning emails no more frequently than every 15 minutes.

 

Note: 

— It is strongly recommended for users to continue monitoring their account in case of risk alert delay or glitch. Bybit will not be held responsible for liquidations resulting directly or indirectly from this alert feature’s malfunction.

— 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 won’t 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 your 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:

• How to Get Started with a Standard Subaccount
• FAQ — Standard Subaccount