SINGAPORE / ACCESSWIRE / March 24, 2020 / Bybit is pleased to announce it is adding Tether (USDT) perpetual contracts to its range of crypto-backed derivative products. USDT contracts will use USDT as both the quote and settlement currency. It will enable two-way trades allowing traders to hold both long and short positions concurrently and with different leverages. All profits, losses, and account balances will be denominated in USDT, making it easier for traders to make investment decisions using a stable currency.
USDT perpetual contracts aim to replicate the underlying spot markets but with increased leverage. Similar to Bybit's existing perpetual contracts, USDT contracts will have no expiry date. The price will be tethered to the underlying index, ensuring full price accuracy.
USDT contracts will bring multiple new features and create additional flexibility for traders in managing their portfolios.
The ability to hold both long and short positions concurrently means that traders are better able to hedge their positions. For example, a trader could open a long-term long position with low leverage and a short-term short position with high leverage. In a cross-margin mode, this will mean traders can avoid having their positions enter auto-liquidation in the event of market volatility. They can also add an extra margin to a position, or opt for Auto Margin Replenishment, where funds will be taken from their account and added to their margin balance automatically.
Previously, Bybit denominated profits and losses in the currency underlying the contract, meaning that traders had account balances in multiple currencies. If they received a margin call, it would mean topping up their margin using the relevant asset underlying the contract.
In contrast, USDT contracts provide full flexibility across different contract types. Cross-margin enables unrealized profit and loss sitting on the account to be deployed as a top-up margin for other positions and even across other contracts. In practice, this means that floating profits can be used to execute trades in different contracts.
For example, if a trader has a floating profit on a BTC-USDT contract, they could use those unrealized gains to execute a second trade in an ETH-USDT contract. The inverse is also true, so traders can use their floating profits to prevent positions with any supported underlying asset from liquidation.
Along with these significant enhancements, Bybit will be rolling out several other new features. The Take-Profit/Stop-Loss (TP/SL) setting can now be found within the order placement window. This would enable traders to directly set TP/SL limits when they place an order.
To speed up the ordering process, traders can now quickly open and close positions and inverse positions at the K-line area. This reduces the chance of missing out on a swift trade during periods of market volatility. Traders can also flip their positions directly on the chart.
Bybit is also introducing changes to its margin requirements, making them substantially lower than competitor exchanges with a more sizable step up for each level.
Finally, traders launching multiple contracts will have the opportunity to participate in a shared insurance fund, helping to offset the risk of liquidation even further.
The introduction of USDT contracts, along with all the features listed above, will be visible for Bybit users with immediate effect.
Bybit is a global cryptocurrency derivatives exchange established in March 2018 and registered in the BVI. It is headquartered in Singapore and has offices in Hong Kong and Taiwan. Bybit has a global user base comprising everyone from individual retail clients to professional derivatives traders.
Bybit's technology team includes experts from numerous leading companies such as Morgan Stanley, Tencent, Ping' an Bank, and Nuoya Fortune. The exchange offers traders a matching engine capable of 100,000 transactions per second with no downtime. Bybit is committed to creating a fair, transparent, and efficient trading environment for all.
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