Finance Feeds logo

Bybit launches unified margin account with auto-borrowing

Rick Steves

“Our new unified margin account affords Bybit users another powerful trading tool to enhance their trading experience and effectively manage portfolio risks.”

Bybit

Bybit has announced the launch of a unified margin account for eligible users, with a full release to be expected in the near future.

The unified margin account offers a completely new derivatives trading structure, the crypto exchange explained, adding that users will be able to use all assets under their account as collateral to trade USDT perpetual, USDC perpetual, and USDC options contracts.

Risks and assets calculated in USD terms

Ben Zhou, co-founder and CEO of Bybit, said: “Our new unified margin account affords Bybit users another powerful trading tool to enhance their trading experience and effectively manage portfolio risks. Our trading system allows our users to enjoy maximum profitability even in times of price fluctuations and unexpected market movements with Bybit’s significant market depth and best-in-class liquidity. We are thrilled to add this new feature, which is one of the best capital efficiency features on the market. We are continually listening to feedback from our 6 million-strong user base, and this feature is another example of our pledge to continually improve our offerings.”

Under the new account, overall risks and assets will be calculated in USD terms. As long as the total maintenance margin (calculated as USD equivalent) under the account meets the requirement, the trader’s positions will remain open.

Traders will be able to trade USDT perpetual, USDC perpetual, and USDC options contracts simultaneously via the unified margin account — without transferring assets back and forth across multiple accounts.

Traders’ USDT, USDC, BTC, and ETH balances under the unified margin account will be calculated as USD equivalent based on their respective conversion ratio. The assets will then be used collectively as their position margin.

The profit and loss of all USDT perpetual and USDC perpetual contracts positions under the unified margin account will be combined and offset against each other. In other words, the loss incurred by one position may not trigger liquidation as long as the overall portfolio risk remains under a critical level.

The unified margin account currently supports USDT, USDC, BTC and ETH, but more assets will be added soon.

Auto-borrowing if available balance falls below zero

Bybit’s unified margin account will also feature auto-borrowing, which means that if the available balance of an asset under the unified margin account falls below zero due to trades and/or market fluctuations, the system will process auto-borrowing of the asset.

No interest will be incurred if the amount to borrow falls within the interest-free range of the asset.

Subscribe

Read this next

Digital Assets

Celsius to repay +70% of custody account holders’ claims

A New York bankruptcy judge today approved a deal struck between troubled crypto lender Celsius Network and its “custody account holders” that will allow them to begin immediate withdrawals of 72.5% of their claims.

Retail FX

eToro revenue halves in 2022, valuation drops to $3.5 billion

Israeli social trading network eToro today reported financial results for the financial year ended December 31, 2022.

Uncategorized

Investors transfers $424 million out of bitcoin funds in six weeks

Despite bitcoin’s decent surge last week, which took the primary cryptocurrency up 70% from the year’s low, digital asset investment products saw outflows for the 6th consecutive week.

Digital Assets

OKX has $9 billion in ‘clean assets’, shows latest proof of reserves

OKX, formerly known as OKEx, has released its fifth proof-of-reserves report amid increasing demand of crypto investors asking for transparency from exchanges they trade with.

Digital Assets

Circle seeks France license to launch Euro stablecoin

Circle, the issuer of the second-largest stablecoin by market capitalization, is seeking to get a dual registration in France as it aims to on-shore its flagship product for the European market – EUROC – a reserve-backed stablecoin.

Digital Assets

CryptoWallet.com Among Minority of Successful Companies to Renew Coveted Estonian License

CryptoWallet.com has successfully renewed its virtual currency service license from Estonia’s FIU for the third year in a row, despite regulatory changes that have made it harder for virtual asset providers to meet the required standards.

Inside View, Institutional FX

Time for brokers to add options trading as volumes explode on high volatility

“Usually, adding options to the typical CFDs and equities offering leads to fragmentation of the platform technology as many brokers will need additional back-end and front-end components, and that could be an important barrier for them. Apart from that, legal hassle and costs associated with proper licensing of market data could be a barrier at first. We are seeing this trend among market data vendors and exchanges to make it easier and more affordable.”

Metaverse Gaming NFT

GCEX’s DeFi education and prime brokerage offering available in DubaiVerse

“We are excited to be part of the developments of The Sandbox and to join other top players in the region, including our regulator, Dubai’s Virtual Asset Regulatory Authority (VARA), as part of the DubaiVerse. This is a great opportunity to bridge the gap between Web3 early adopters and GCEX clients, building a community around Web3 and digital assets.”

Digital Assets

Circle wants Fed to back USDC stablecoin after “very serious stress test” with collapse of SVB

The collapse of Silicon Valley Bank allegedly proves Circle’s point that there is a need for its USDC stablecoin to be backed by the U.S. Federal Reserve with its U.S. dollars held at the Fed.

<
✖