On June 15, 2022, Bybit, a cryptocurrency trading platform with one of the highest Bitcoin (BTC) futures open interest, made portfolio margin mode available for qualifying customers. Due to this new portfolio margin feature on Bybit, customers of the trading platform will be able to fully leverage their crypto portfolio while maximizing capital efficiency. In addition, the portfolio margin mode examines holdings across all of Bybit’s trading solutions and adjusts the margin appropriately.
The portfolio margin mode improves profitability and efficiency by measuring the entire risk throughout a user’s hedged portfolio. This lowers margin needs while leading to an increased rate of return. The trader must pay a premium needed for the option bought when using the bull market call spread method in conventional margin mode, depending on specific holdings.
Simultaneously, the trader must pay the required margin for the option sold, and the combined target return is restricted. Customers may not get the best return on investment if they employ this technique.
Significant Reduction In Margin With The Portfolio Margin Mode
Bybit evaluates the portfolio margin mode’s cumulative risk of options traded on the exchange when enabled. The margin will be greatly lowered because the majority of the volatility has been hedged. A more thorough risk evaluation results in reliable and secure trading tactics, as well as increased returns in profit scenarios.
Portfolio margin mode elevates Bybit’s derivatives trading to a new level. Customers can begin with USDC perpetual contracts, as well as USDC options with increased capital efficiency. According to Bybit, the portfolio margin will be extended into USDT products later on.
Traders can also rest assured that Bybit’s tried-and-true TP/SL (Take Profit/Stop Loss) tool will make it simple to trade derivatives using sophisticated exit position approaches. Users may limit risks and protect themselves from exorbitant losses. This will happen just like they can do with any of Bybit’s leveraged solutions, thanks to multi-layered liquidation rules that ensure safety and fairness throughout all Bybit trades.
According to Ben Zhou, co-founder, and CEO of Bybit, this product represents another stride forward in Bybit’s development as a digital asset service provider, as part of the platform’s ongoing endeavor to address the demands of the platform’s 6 million users worldwide. He said that Bybit’s portfolio margin mode will offer up new prospects for Bybit consumers.
Ben Zhou further added, “As traders ourselves, we understand the importance of having access to the most powerful trading tools and features. To that end, portfolio margin offers one of the best capital efficiency options in the market on one of the most reliable trading platforms out there.”
About Bybit
Since its inception in March 2018, crypto trading platform Bybit has been providing a sophisticated platform with a lightning fast comparing engine, outstanding customer service solutions, and multilingual support networks for cryptocurrency traders. Institutional and retail customers around the world use the firm’s integrated digital derivatives and spot trading platform, crypto mining and staking solutions, an innovative NFT marketplace, and API assistance.
Oracle Red Bull Racing, Formula One racing team, esports teams NAVI, Alliance, Astralis, Virtus.pro, Oracle Red Bull Racing Esports, as well as association football (soccer) teams Avispa Fukuoka and Borussia Dortmund, are all proud partners of Bybit.
