Bybit contract trading rules

Bybit's structured contract trading rules encompass essential aspects such as order types, liquidation mechanisms, responsible trading guidelines, and robust security measures to ensure fairness and trader protection.

Nov 10, 2024 at 09:20 am

Bybit Contract Trading Rules: A Comprehensive Guide

Introduction:

Bybit, a renowned cryptocurrency exchange, offers a sophisticated platform for contract trading. To ensure a fair and secure trading environment, Bybit has established a comprehensive set of rules and regulations that all traders must adhere to. Understanding these rules is crucial for successful and compliant contract trading on Bybit.

Essential Contract Trading Rules on Bybit:

1. Types of Contract Trading:

• USDT Perpetual Contracts: These are contracts that settle in USDT, providing traders with the flexibility to hold positions without worrying about physical delivery.
• Inverse Perpetual Contracts: These contracts settle in the underlying cryptocurrency, and traders speculate on the value of the cryptocurrency relative to USDT.

2. Margin and Leverage:

• Initial Margin: This is the minimum amount of funds required to open a contract position.
• Leverage: Bybit offers leverage of up to 100x, allowing traders to amplify their potential returns (and losses).

3. Order Types:

• Limit Orders: Orders placed at a specific price or better.
• Market Orders: Orders executed at the current market price.
• Stop-Limit Orders: Orders that become limit orders when the market price reaches a specified level.
• Stop-Market Orders: Orders that become market orders when the market price reaches a specified level.

4. Liquidation:

• Price Triggering: Liquidation occurs when a trader's account equity falls below a certain level due to adverse price movements.
• Automatic Execution: Liquidations are executed automatically by Bybit to prevent further losses.
• Clawback Protection: Bybit's Clawback Protection Fund ensures that traders' losses in liquidation are minimized.

5. Fees:

• Maker Fees: Charged to traders who place orders that add liquidity to the order book.
• Taker Fees: Charged to traders who place orders that remove liquidity from the order book.

6. Responsible Trading:

• Risk Management: Traders should always manage their risk and use appropriate leverage.
• Avoid Manipulation: Bybit prohibits any form of market manipulation, including wash trading and spoofing.

7. Disputes:

• Contesting Liquidations: Traders can request a review of their liquidation orders if they believe an error occurred.
• Trading Disputes: Disputes between traders can be escalated to Bybit's support team for mediation.

8. Privacy and Security:

• Personal Information: Bybit adheres to strict privacy policies and safeguards user information.
• Platform Security: Bybit employs advanced security measures to protect its platform from cyber threats.