Bybit Futures Trading: All You Need to Know

Let’s talk about futures – not the kind where you retire early on a tropical beach, but the crypto kind where you go long or short, dodge liquidation on a daily basis, and maybe walk away with enough for a trip to the local pool. Still, if you know what you’re doing (and with a bit of luck), Bybit futures trading can be a powerful way to take things further.

As one of the top exchanges for crypto derivatives, it’s no surprise that Bybit offers a robust futures lineup. You get access to hundreds of contracts, flexible leverage options, and a high-speed trading engine that stays smooth even when the market gets hectic.

So whether you're just learning the ropes or already running trades at scale, here’s everything you need to know about trading futures on Bybit!

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Understanding Bybit Futures Trading

Bybit derivatives offer a full lineup of instruments built to unlock more potential from your crypto strategy. Whether you’re after tighter control, higher leverage, or smarter ways to hedge, the platform gives you the tools to make your trading more flexible and efficient. From perpetual swaps to dated futures and options contracts, there’s something here for every style and risk appetite.

Now let’s bring the spotlight to what we’re here for: Bybit futures trading.

If you’re new or need a quick refresher, a futures contract is basically an agreement to buy or sell an asset at a set price, either on a specific date (standard futures) or on an ongoing basis (perpetuals). You also don’t need to own the underlying crypto to take a position, which makes them a popular derivative for managing risk or gaining market exposure.^[1]

On Bybit, futures contracts settle in different currencies depending on the type you choose. You also get the flexibility to trade with a margin setup that fits your strategy.

Types of Futures Contracts on Bybit

Bybit splits its futures contracts into two main categories: standard futures and perpetual contracts. The key difference comes down to the expiration date.

Standard futures come with a set end date. Contracts are based on the last day of specific periods, like the current week, next week, third week, current month, next month, third month, current quarter, or next quarter. Once that date hits, the contract closes automatically, and your profit or loss is settled.

On the other hand, perpetual contracts have no expiration or settlement date. They can stay open indefinitely, as long as your margin holds up and you meet the platform’s requirements.

To make things clearer, here’s a quick side-by-side comparison:

Table: Futures contracts VS perpetual contracts

To give an example of a standard futures contract, let’s say two traders agree to trade 10 BTC at $100,000 each, with the contract set to expire on December 31, 2025. No matter where the market is on that date (whether Bitcoin’s at $150K or $80K), the seller has to deliver the 10 BTC, and the buyer has to pay the agreed price.

Now, if that same trade happened through a perpetual contract, there’d be no expiration date. You could keep that 10 BTC position open indefinitely, as long as your margin holds and you’re willing to deal with the funding fees that come with it.

Here’s the thing though, this futures stuff can get a little confusing at first. Some traders call them “perpetual futures”, others just say “perpetuals” or simply “perps”. It’s also pretty common to see them treated like a totally separate product, which is fair since they do work a bit differently.

But at the end of the day, both standard and perpetual contracts live under the same Bybit derivatives section. They use the same trading interface, follow the same fee structure, and fundamentally serve the same purpose. So instead of splitting them into separate buckets, I’ll refer to both as futures contracts throughout this article.

With that clarified, let’s talk about how each type of contract comes with its settlement options and margin setup. These variations make it easier to align your trades with your portfolio structure or whatever you’re holding, whether that’s USDT, USDC, or any other tokens:

• USDT-margined contracts: Settled and collateralized in Tether. A widely used option if you’re looking for straightforward and stable PnL tracking.
• USDC-margined contracts: Function similarly to USDT contracts but use USDC instead. Useful if you're trading with portfolio margin or prefer to spread exposure across different stablecoins.
• Inverse contracts: These are margined and settled in crypto (like BTC or ETH) instead of stablecoins. Ideal choice if you already hold those coins and want to grow your stack without converting to stable assets.

Each combination gives you different ways to manage exposure and risk depending on what you're trading with and what you're aiming for.

Margin Modes and Leverage

Once you’ve picked a contract, the next thing to figure out is how you want to manage your position. That comes down to your margin, the amount of assets you need to put up as collateral to open and maintain a leveraged trade.

Bybit futures trading supports three margin modes, each offering a different level of flexibility and control:

• Isolated margin applies your margin to just one position. If the trade goes sideways, only the margin assigned to that contract is affected. It supports both manual margin control and auto-replenishment, and works with all perpetual and futures contracts.
• Cross margin shares margin across all your open positions. If one position loses money, your remaining balance can be used to keep it open. It also allows profits from one trade to cover losses from another. Like isolated, it works with all contracts and supports hedge mode for USDT perps only.
• Portfolio margin is designed for more advanced setups. It uses a unified margin pool and offsets risk between spot and derivatives positions. If your portfolio is well-balanced, this mode can increase capital efficiency and reduce the chance of liquidation. It only supports one-way mode and is suited for large, multi-asset strategies.

Bybit lets you adjust your leverage with a fair amount of flexibility, offering up to 125x on certain pairs. In theory, that means you could use just $100 in margin to control a $12,500 position. But keep in mind, while higher leverage can increase your potential returns, it also increases the risk of getting liquidated.^[2]

To help manage this, Bybit uses a dynamic risk system. As your position size grows, the mechanism automatically lowers your maximum leverage and increases your margin requirements. It’s designed to curb excessive exposure, reduce surprise liquidations, and keep the market steadier for everyone.

You can always check the specific risk limits for each trading pair directly on Bybit, so you know exactly how your leverage and margin might adjust as your position grows.

How to Trade Futures on Bybit

So, now that you’ve got a grip on how Bybit futures trading works, you probably want to try it for yourself. Maybe open a position or two, see how it feels in real time. If that’s where you’re headed, let me walk you through what you need to know to get started.

How to Open a Bybit Futures Trading Account

Before you can start trading futures contracts, you’ll need to create an account on the platform and complete the mandatory identity verification process.

If you already have a verified Bybit account, you can skip this part and jump straight to the next one!

Once it’s submitted, you’re done with verification on your end.

How to Deposit Funds into Your Bybit Account

Once your account’s set up and verified, the next step is getting funds in so you can actually start trading. There are a few ways to do this:

• Crypto deposit;
• Fiat deposit;
• P2P trading;
• One-Click Buy.

For this example, I’m going with the One-Click Buy option. It’s one of the easiest ways to buy crypto on Bybit using fiat, with various payment methods available depending on your region. Here’s how it’s done:

Once the transaction goes through, your crypto will show up in your Funding Account.

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How to Open a Futures Position on Bybit

Now that your account’s funded, you’re all set to trade futures on Bybit. I’ll show you how to navigate the trading screen, tweak your margin and leverage settings, and place your first order.

In this example, I’m using the BTC/USDT perpetual pair.

Next, click the leverage number right next to it. This opens a selector where you can either pick a preset level or click [Customize] to type in the exact leverage you want.

• Limit lets you place an order at a specific price or better. You’ll only get filled if the market reaches that price, which gives you more control over your entry.
• Market fills your order immediately at the best available price. It’s fast, but the price may not be exactly what you expected if the market’s moving quickly.
• Conditional is more advanced. It only activates your order once a certain trigger price is hit, which is ideal for setting up stop-losses, take profits, or breakout strategies.

Once you’ve picked your order type, enter the quantity you want in the box below. You can also drag the slider to allocate a percentage of your available margin.

Before confirming, you can also toggle the [TP/SL] box to set your take-profit and stop-loss levels:

• Take-profit closes the trade automatically when the price hits your target.
• Stop-loss helps you cut losses if the market moves against you.

These are optional, but can be useful if you want to manage your trades without babysitting the screen.

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Breaking Down Bybit Futures Fees and Costs

Now that you’ve figured out how to open a position on Bybit, and before you end up with ten open trades fueled by caffeine and dreams of retiring early, let’s go over the fees that come with it. They might look small at first, but they can make a real difference in your overall costs and what you actually take home.

And when I say “small,” I do mean it. The fees won’t weigh too heavily on your pocket. In fact, Bybit derivatives fees are pretty competitive across the board. That applies not just to futures contracts, but also to its range of options.

Like many major exchanges, Bybit uses a maker-taker model with a tiered system that rewards high-volume traders and large asset holders with better rates and extra perks.

What makes it more flexible, though, is that there are two ways to level up:

• 30-day trading volume: The more you trade, the more you contribute to the platform’s activity. In return, Bybit reduces your fees.
• Asset balance: If you're not a frequent trader but hold a decent amount of assets, that alone can qualify you for higher VIP status.

Here’s how the Bybit futures fee tiers are structured:

Table: Bybit futures trading fees discounts

On top of this, there's also a separate Pro Tier for institutions and API-heavy traders who move serious volume. It works on the same “more volume = lower cost” logic, but with deeper discounts and more flexible limits geared toward professionals and market makers.

That said, it’s worth noting that Bybit can adjust its trading fees at any time. Any updates take effect as soon as they’re posted on the site or sent via email. So once your account is set up, it’s always a good idea to check your actual rates on your dashboard before placing new orders.

Aside from maker-taker fees, Bybit futures trading comes with a few other potential costs to be aware of:

Table: Additional fees

Let's break them down:

• Deposit fees: Crypto deposits are free, no strings attached. Fiat deposits, though, depend on your currency, payment method, and region.
• Withdrawal fees: Crypto withdrawals come with a fixed fee based on the token and its network. Fiat withdrawals depend on your location and the method you use.
• Funding rate: This is a recurring payment between long and short positions on perpetual contracts. It’s based on market conditions and isn’t paid to Bybit.
• Settlement fee: A 0.05% fee applies to futures contracts with an expiration date. If you hold a position until expiration without closing it manually, the system will auto-settle it, and that’s when the fee is charged.
• Delisting fee: If a contract is removed from the platform, your open positions will be closed at market price, and a fixed 0.05% fee will be charged.

By the way, Bybit’s built-in calculator for perpetual and futures contracts can help you get a quick handle on your potential profit or loss before you place an order. I really recommend making it part of your routine. It lets you plug in your position size, leverage, entry or exit prices, and contract quantity to instantly see your potential profit or loss.

It’s a handy way to plan your strategy before committing to an order. Just a small heads-up: it doesn’t factor in your fee rate yet, so it’s smart to double-check that part yourself when running the numbers.

📚 Read More: Bybit Fees Explained

How Bybit Futures Compares to Other Platforms

While Bybit Futures trading might feel like the right fit for you, it’s always smart to see how it stacks up against other major platforms offering similar features. So let’s line them up side by side and see how it compares to the likes of Binance and Kraken.

Bybit VS Binance Futures

As one of the most established names in the crypto space, Binance is often seen as the benchmark when comparing exchanges. Its wide product range and deep liquidity have led many to call it the “all-in-one hub” for pretty much every kind of trader.

And with a solid derivatives lineup, it holds up well even when stacked against more specialized platforms like Bybit.

Both platforms cater to professionals and institutions with robust dashboards, intuitive layouts, and engines fast enough to handle high-speed trading without a hitch. That said, they still manage to stay beginner-friendly. I like that both exchanges offer guides and helpful pop-ups the first time you open the derivatives trading page.

Fees are also competitive on both sides. Binance has a slight edge on taker fees for futures, offering 0.05% compared to Bybit’s 0.055%. Plus, you can get an extra 10% discount if you pay fees using BNB.

The catch is that unlocking deeper discounts on Binance requires you to hit both a 30-day trading volume and hold a certain amount of BNB. That feels a bit restrictive compared to Bybit, where you only need to meet one of those requirements, and there’s no specific token you’re tied to.

Table: Bybit vs Binance futures

Another thing that I personally like is that Binance has its own dedicated futures section. It keeps all the derivatives products neatly grouped and separated from other services, such as spot or earn. Bybit’s portal is solid too, but blends more with other areas. It’s really a minor thing, but that kind of separation feels cleaner and makes me more comfortable navigating my trades.

All things considered, both platforms should serve you well for futures trading. There’s no obvious winner when it comes to Bybit VS Binance Futures.

If you’re more of a casual trader, you might lean toward Binance for its slightly lower base fees and handy BNB discount. But if you're moving large volume or looking for more wiggle room in how the fee structure works, Bybit gives you that extra flexibility, plus a wider lineup of trading pairs to work with.

📚 Read More: Decoding Binance Futures

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Bybit VS Kraken Futures

Kraken is another well-established name in the industry that also often comes up in comparisons. As one of the more compliance-focused platforms, it offers a decent lineup of derivatives that many traders turn to for a sense of stability and oversight.

Compared to the more derivatives-focused Bybit, Kraken can feel a bit limited in a few areas. It offers up to 50x leverage on select contracts, which is modest next to Bybit’s 125x ceiling. The number of contract pairs is also smaller, and the collateral options aren’t as wide-ranging.

But Kraken plays to its strengths. Its strong regulatory position means better fiat on-ramps and unique products like FX perpetual futures. This feature lets you trade the forex market in real time without expiry dates, opening up more ways to diversify your portfolio.

Table: Bybit vs Kraken futures

Security is another area where Kraken does best. The platform is widely known for taking security seriously, offering features like FIDO2-compliant 2FA, customizable API key permissions, and email confirmations for sensitive actions. On top of that, it holds an ISO/IEC 27001:2013 certification and has completed a SOC 2 Type 1 examination, clear indicators of its commitment to safeguarding user assets and data.

All in all, Bybit futures trading offers a more flexible and feature-rich experience, making it a top pick for traders who want a wider contract selection and higher leverage options. Kraken, on the other hand, is better suited for those who value tight regulatory oversight and a reliable security track record.

📚 Read More: A Beginner's Guide to Kraken Futures

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Conclusions

Closing things out, Bybit futures trading sits at the heart of the platform, solidifying its position as a leading venue for derivatives. With flexible collateral options, hundreds of tradable pairs, high leverage, and a fast, reliable engine, you’ve got everything you need to build and execute your trading strategy.

Doesn’t matter if this is your first time trying out derivatives or you’re already trading at an institutional level, you’ll find plenty here that suits your experience. The base fees are solid too, and the opportunity to reduce them further through the VIP system adds extra incentive for active and high-volume traders alike.

The content published on this website is not aimed to give any kind of financial, investment, trading, or any other form of advice. BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor.

Scientific References

1. Zhang C., Ma H., Arkorful G. B., Peng Z.: ‘The Impacts of Futures Trading on Volatility and Volatility Asymmetry of Bitcoin Returns’;

2. Cheng Z., Deng J., Wang T., Yu M.: ‘Liquidation, Leverage and Optimal Margin in Bitcoin Futures Markets’.