2024-11-18 17:52:26Spot Margin Trading allows you to leverage borrowed funds from Bybit to make larger trades. This trading type requires collateral in other margin assets, which secures your borrowing. However, be aware of liquidation risk: if your Maintenance Margin Rate (MMR) exceeds 100%, your positions may be liquidated to cover losses.
Before you begin, here are essential points to consider:
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Margin Modes: Spot Margin Trading is only available in Cross Margin or Portfolio Margin mode. Ensure you’re not in Isolated Mode, as it is unsupported for Margin Trading.
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Collateral Requirement: To borrow funds, the asset used in the trading pair must be enabled as collateral. For instance, to trade BTC/USDT, you will need to enable BTC as collateral first. To learn more about how to enable assets as collateral, visit here.
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Unified Trading Account Rules: Understand the borrowing, interest, and repayment rules in your Unified Trading Account here to avoid unexpected fees.
Here’s a step-by-step guide to help you start Spot Margin trading on Bybit.
- Key Terms in Margin Trading
- Access to Margin Trading Trading Guide
- Step-by-Step Guide to Start Spot Margin Trading
- Turn On/Off Margin Trading
Key Terms in Margin Trading
Before placing your Spot order, make sure you understand the following terms:
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Available |
Available Balance is a system calculation of the balance you can use to place new margin trading orders, provided that your Initial Margin Rate (IMR) does not exceed 100%. |
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To Borrow |
The amount that you will be borrowed for the respective Margin Trading order. Please note that interest will be incurred even for limit orders that have not been executed. |
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Max. Buy/Sell |
The maximum amount of assets you can buy or sell based on your available balance. |
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Initial Margin Rate |
This indicates the margin balance that has been deployed to your positions and orders. In the event of IMR = 100%, you can no longer place any orders that may increase your position size or place an order to buy lower conversion rate assets with higher ones. |
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Maintenance Margin Rate |
This indicates the margin required to maintain open positions and borrowings in both Derivatives Trading and Spot Margin Trading. When the MMR is equal to or greater than 100%, liquidation will be triggered. |
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USDT Balance (or any other coins) |
This shows your USDT wallet balance in your Unified Trading Account. Please note that this balance does not represent the actual amount of assets you can use for order placement, as your assets can be occupied for active orders. Always refer to the available balance for the amount you can use. |
Access to Margin Trading Trading Guide
Tap on the Ellipsis icon and you can access the Margin Trading Guide and Margin Data. The margin data shows the supported collateral and borrowable coin, with the respective interest rate, liquidation order and maximum borrow amount.
Step-by-Step Guide to Start Spot Margin Trading
Step 1: Go on Trade → Margin in the navigation bar and select your preferred margin trading pair.
You can switch to another trading pair by tapping the icon next to the margin trading pair.
If you cannot find Margin on the panel, tap on the panel settings in the upper right corner to enable Margin on your panel. You can also drag and customize navigation.
Step 2: When using Margin Trading for the first time, a trading guide will appear in the window. Ensure you fully understand how Margin Trading and MMR work in the Unified Trading Account. For additional details, click here.
Step 3: Set up your margin order with the following parameters.
Using BTC/USDT as an example,
1. Select your leverage: Maximum 10x.
2. Select your trade direction: Long or Short
3. Select order type.
4. Enter the order price or Trigger Price
5. (a) Enter the quantity, or
(b) Use the percentage bar to quickly adjust the order value of your order.
6. Tap on Buy/Long BTC or Sell/Short BTC. (More on Long/Short with Margin Trading here)
Step 4: After you enter the parameter, you can refer to the To Borrow amount and the system will borrow the required funds on your behalf to execute the order. Repayment is required for the borrowed funds. To learn how to make repayment, visit here.
Turn On/Off Margin Trading
Margin Trading is enabled by default in Cross and Portfolio Margin. To toggle it on or off, please head to the ellipsis menu on the right and toggle on/off Margin. Please note that you must complete all repayments and cancel all margin orders before turning off Margin trading.
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