Bybit Cryptocurrency Derivatives Exchange Launches USDT Perpetual Contracts

Bybit exchange has announced Tether (USDT) perpetual contracts addition to its derivatives platform. The USDT contracts will bring increased new features and Bybit will be using USDT as both the quote and settlement currency.

USDT perpetual contracts are aiming 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.

The derivatives platform will enable two-way trades enabling 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.

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.