Bybit Institutional integrates spot trading into Portfolio Margin Mode

Rick Steves

Bybit Institutional, part of Bybit – the world’s third-largest crypto exchange by volume, has upgraded its Portfolio Margin Mode.

This improvement now includes spot trading capabilities. The upgrade allows traders to incorporate spot positions into their hedging strategies, enhancing risk management in the volatile cryptocurrency market.

Previously, Portfolio Margin Mode grouped USDC and USDT derivatives of the same currency into one risk unit, using stress testing for margin requirements. The new version allows traders to use spot holdings to hedge against derivatives position losses, aiding in navigating market volatility and reducing the impact of price fluctuations.

The Portfolio Margin Mode

The key benefits of integrating spot trading into Portfolio Margin Mode include:

Reduced Margin Requirements: By balancing profits and losses between spot and derivatives positions, traders may lower overall margin requirements, increasing capital efficiency.
Seamless Integration: Spot positions are easily integrated into the Portfolio Margin Mode, enabling unified portfolio management on a single platform.

Traders have the option to participate in spot hedging for spot prices, though this feature is not automatically enabled. They must actively choose to opt in. The system then checks if the trader’s maintenance margin rate (MMR) is below 100%, allowing switching only if this condition is met.

Ben Zhou, Co-founder and CEO of Bybit, noted that the expanded Portfolio Margin Mode offers traders more confidence in managing market volatility, optimizing risk management, and enhancing the potential for successful crypto trading. “Bybit’s commitment to innovation and trader empowerment is exemplified by the expansion of its Portfolio Margin Mode to include spot trading. This enhanced feature empowers traders to navigate market volatility with greater confidence, optimize risk management practices, and potentially reap the rewards of successful crypto trading.”

Reducing counterparty risk

A few months ago, Bybit integrated with Copper’s ClearLoop network, marking a significant step forward in addressing the needs of institutional investors and reinforcing the principles of good governance, transparency, and accountability.

The crypto exchange took a monumental leap forward by seamlessly merging with Copper’s pioneering ClearLoop network. This essential partnership introduces a new paradigm of off-exchange settlements, thereby ushering in an era of increased capital effectiveness and diminished counterparty risk.

Access to ClearLoop’s trust documentation, which directly tackles exchange counterparty and insolvency risk, allows Bybit’s clients to navigate the trading landscape with heightened security and confidence.

A critical advantage of this integration is the provision for expedited off-chain settlements while trading on Bybit, an indispensable feature during market turbulence when delays in blockchain transaction confirmations can escalate.

Protecting assets under Copper’s Multi-Party Computation custody and the ClearLoop integration showcasing a transparent English Law trust structure provides institutional clients with an additional layer of empowerment.

  • Read this next

    Digital Assets

    Bitcoin nears $62,000, sparking retail buying frenzy

    Bitcoin dashed past the $61,000 barrier on Wednesday, a peak it hadn’t touched since the waning days of November 2021.

    Market News

    OPEC+ Extension of Oil Output Cut Causes Rally

    The dynamics surrounding crude oil are indeed fascinating, given its unique role as both a globally traded commodity and a vital energy source deeply influenced by the OPEC+ alliance’s decisions.

    Institutional FX

    DKK reports 226% growth in 2023 with eyes on African expansion

    “Our numbers are beginning to show how we are powering, the growth required by emerging markets, and we plan for the success of our strategies to continue to thrive in 2024.”

    Industry News

    ‘WTF’ as in ‘What The Fraud?’, Sumsub’s new podcast on digital fraud

    “We found a lack of informative podcasts talking about digital fraud threats and prevention for business owners. So, we decided to dive in and share our expertise along with industry top minds in the ‘What The Fraud?’ podcast.”

    Digital Assets

    Coin Metrics integrates market data from Cboe Digital

    “We are pleased to work with Coin Metrics and believe that having quality and timely data, and systems to analyze that data, will help crypto markets mature as well as evolve to become a core component of a diversified investment portfolio. We are focused on providing access and solutions to the spot and derivatives crypto market in a way which mirrors an investor’s experience with traditional markets.”


    AU10TIX launches KYB solution to address regulatory requirements

    “Our customers have been requesting a comprehensive KYB solution, because money laundering and fraud have become far too prevalent in the corporate world. Our unified KYB/KYC solution is essential for identifying bad actors and maintaining a safe business environment in 2024.”

    Digital Assets

    Japan Is Rapidly Emerging As A Global Leader In Compliant Crypto Payments

    Japan is often hailed as one of the most forward-thinking nations in the crypto industry, with its government taking a very positive stance on the potential of concepts such as Web3. 

    Digital Assets

    Kraken launches institutional arm

    “If you already work with Kraken, you know how much we care about offering high quality products and a client-first experience. We’ve been the leading crypto exchange for more than a decade and through Kraken Institutional, we’ll offer the same deep expertise and cutting-edge technology to propel trading excellence for institutions.”


    Centroid integrates with brokerage solutions provider GTN

    “We are thrilled to integrate GTN into Centroid Bridge, our multi-asset connectivity bridging engine. This integration allows our clients to gain access to the wide range of multi-asset products offered by GTN.”