Bybit leverage and settings explained!

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How many times of leverage available on bybit?

Have you wondered

Bybit is an overseas exchange that can be leveraged up to 100 times.
It is a derivative exchange specialized in virtual currency FX, and handles leverage trading in all currencies.
However, some people are worried about how to use and set leverage, because it is an overseas exchange.
Therefore, we are going to explain the leverage of bybit in an easy-to-understand manner here.
It also summarizes the actual setting method, so you can start leverage trading as soon as you read this article!

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• You can gain a big profit with a small amount of money by using leverage
• Leverage of bybit is Maximum 100 times
• Maximum leverage besides BTC pair is 10 to 50 times
• It is easy to make settings on leverage in the order screen
• You can also change the leverage in the middle of trading
• However, be aware that the greater the leverage, the easier it is to lose money!

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→ bybit Official site here

bybit Click here to register

What is leverage in the first place?

Leverage means that you can use a fixed multiple of the budget by depositing the margin first.

Leverage is used not only for cryptocurrency trading but also for various trades such as stocks
and FX.

You can use different leverage (multiples) depending on each exchange, but it is limited to a maximum of 4 times in domestic exchanges.

On the other hand, many overseas exchanges allow double-digit or triple-digit multiples because there is no maximum leverage limit.

Therefore, we recommend overseas exchanges if you wish to trade with high leverage.

Benefits of using leverage

The advantage of using leverage is that you can target big profits with a small amount of money.

Let’s say you only have 1,000 USD to deposit as margin.

You are only supposed trade with a budget of 1,000 USD, but if you leverage 10 times, you will be
able to trade with a budget of 10,000 USD with “1,000 USD x 10 times”.

At that time, the profits you get from the transaction are as they are, and you can create a large amount of profits if things go well.

You can also “short sell” by depositing margin, that means you can make a profit by both rising and falling prices.

Disadvantages of using leverage

Leverage tends to increase the loss as much as you can get a large profit.

In particular, virtual currencies have the characteristic of volatile prices, so trading with high leverage increases the risk of forced loss cuts.

Also, in leveraged trading, there are “swap points” that happens just by holding a position, so it is not suitable for long-term holding.

Margin requirement and maintenance margin

When you use leverage, you need to understand the required margin and maintenance margin.

Margin requirement is the margin required to hold a position and is determined by the size of the position and the amount of leverage.

On the other hand, the maintenance margin means the “minimum amount” required to hold a position to use leverage, and is the standard number for loss cut execution.

In other words, when you use a large amount of leverage, you need more margin and the risk of loss cut increases.

Maximum leverage of bybit is 100 times

The maximum leverage available on bybit is 100x.

However, BTC pairs can only be used up to 100 times, and it is up to 10 to 50 times for other currencies.

【USDT indefinite contract】

【Inverse indefinite contract】

【Inverse futures】

Cross margin and separation margin

There are two types of leverage: “cross margin” and “separation margin“.

Each leverage has a different way to control money, and cross margin is to use all the money deposited as margin for transactions.

On the other hand, if you only use a part of the money deposited as margin, it is called the separation margin.

Cross margin

You can aim at maximizing profits, because the entire margin is used for trading,

However, you need to trade carefully because you lose all margin if the loss becomes large by any chance.

Separation margin

You can save amount of funds even if you have a forced loss cut, because you are allowed to save a part of the margin.

Therefore, if you are not familiar with leveraged trading, we recommend to trade with a separation margin.

Also, you can finely set the leverage from 1 to 100 times (or 50 times) with bybit, so you can trade according to your level and financial situation.

Comparison with other overseas exchanges

Here is a comparison of the maximum leverages of popular foreign exchanges.

As of April 2021, it boasts the world’s largest leverage, 500 times that of the Crypto GT.

However, even though it is as much as100 times higher than bybit,

How to set leverage bybit

Bybit leverage can be easily set from the order screen.

You can change leverage in the middle of a transaction

The advantage of bybit is that you can change the leverage even after it is set.

You can change the leverage even if you already have a position on bybit.

That means, you can make more profits and less losses!

However, please keep in mind that the standard of loss cut also changes if you change the multiple of leverage.

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Bybit’s loss cut is based on the bankruptcy price, which is set independently, not on the margin maintenance rate.

• Long ・・・Average entry price x leverage ÷ (leverage + 1)
• Short・・・Average entry price × Leverage ÷ (Leverage -1)

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Leverage summary of bybit

You can use leverage up to 100 times, and finely set the leverage from 1 to 100 times on bybit.

Therefore, you can trade according to your level and financial situation.

Also, Maximum 100 times is still a large multiple even among overseas exchanges, so if you want to operate virtual currency FX with a small amount of money, please use it!

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• You can aim for big profits with a small amount of money with leverage
• Maximum leverage of bybit is 100 times
• Maximum leverage besides BTC pair is 10 to 50 times
• There are two types of leverage, “cross margin” and “separation margin”.
• We recommend Separation margin for those who are not familiar with leveraged trading
• Leverage can be easily set on the order screen
• You can also change the leverage in the middle of trading
• However, be aware that the greater the leverage, the easier it is to lose money!

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→ bybit Official site here

bybit Click here to register