Bybit is pleased to announce that it is adding Tether Perpetual Contracts (USDT) to its range of crypto derivatives. In USDT contracts, USDT will be used both as a quote price and as a settlement currency. This will allow for bilateral transactions, allowing traders to simultaneously hold long and short positions with different leverage. All profits, losses and account balances will be denominated in US dollars, which will facilitate the traders making investment decisions using a stable currency.
Permanent USDT contracts aim to copy the underlying spot markets, but with increased leverage. As with existing Bybit termless contracts, USDT contracts will not expire. The price will be tied to the base index, ensuring complete price accuracy.
USDT contracts will bring many new features and create additional flexibility for traders to manage their portfolios.
The ability to simultaneously hold long and short positions means that traders can better hedge their positions. For example, a trader may open a long-term long position with a low leverage and a short-term short position with a high leverage. In cross-margin mode, this will mean that traders can avoid the automatic liquidation of their positions in the event of market volatility. They can also add additional margin to the position or choose to automatically replenish the margin when the funds are taken from their account and automatically added to their margin balance.
Earlier, Bybit indicated gains and losses in the currency underlying the contract, which meant that traders had account balances in several currencies. If they received a margin call, it would mean replenishing their margin using the corresponding asset underlying the contract.
In contrast, USDT contracts provide complete flexibility for various types of contracts. Cross-margin allows you to use unrealized gains and losses on the account as a replenishment margin for other positions and even for other contracts. In practice, this means that floating profits can be used to conclude transactions on various contracts.
For example, if a trader has a floating profit under the BTC-USDT contract, he can use this unrealized profit to complete the second transaction under the ETH-USDT contract. The converse is also true, so traders can use their floating profits to prevent liquidation of positions with any supported underlying asset.
Along with these significant improvements, Bybit will be introducing several other new features. The Take-Profit / Stop-Loss (TP / SL) parameter can now be found in the order placement window. This would allow traders to directly set TP / SL limits when placing an order.
To speed up the ordering process, traders can now quickly open and close positions and reverse positions in the K-line area. This reduces the likelihood of skipping fast trading during periods of market volatility. Traders can also change their positions directly on the chart.
Bybit also makes changes to its margin requirements, making them significantly lower than competitors, with a more significant step up for each level.
Finally, traders who have entered into several contracts will be able to participate in the general insurance fund, which will help to further compensate for the risk of liquidation.
The introduction of USDT contracts, along with all the functions listed above, will be visible to Bybit users with immediate effect.
About Bybit
Bybit is global exchange derivatives of crypto-currencies, created in March 2018 and registered in the BVI. The company is headquartered in Singapore with offices in Hong Kong and Taiwan. Bybit has a global user base that includes everyone from private retail clients to professional derivatives traders.
Bybit's technology team includes experts from many leading companies such as Morgan Stanley, Tencent, Ping 'Bank, and Nuoya Fortune. The exchange offers traders an appropriate mechanism capable of producing 100 transactions per second with no downtime. Bybit is committed to creating a fair, transparent and efficient trading environment for everyone.