USDT Perpetual Contracts on Bybit – The Lowdown & The Breakdown.

What Are USDT Perpetual Contracts?

Tether is a stablecoin that is pegged to different fiat currencies. USDT is pegged to the US dollar and is issued by the company known as Tether. This allows traders to transfer the “fiat equivalent” in value between exchanges, without going through the traditional banking system.

A USDT contract is a digital currency contract that uses USDT as both the quote currency and the settlement currency. Essentially, our USDT contracts allow two-way trades, i.e., traders can hold long and short positions concurrently and with different leverage. The aim is to replicate the underlying spot market but with elevated leverages. This USDT contract does not expire and can use a tethering method to follow the underlying reference price index closely. 

USDT, as both quote and settlement currency for all the USDT contracts, will be the only capital you need in your wallet balance. All the profits and losses are realized in USDT. While most digital currencies such as Bitcoin are prone to the volatility of ever-changing cryptocurrency values, USDT is relatively stable from the US dollar traders’ perspective. 

USDT On Bybit – How did it come about?

Bybit has launched USDT perpetual contracts. This is in line with our Q1 2020 plan to launch linear contracts settled in USDT together with our mobile app. 

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The decision to launch USDT perpetual contracts stemmed from our austere adherence to our core value of Listen, Care, and Improve. Traders and fans of Bybit have long been rallying for this feature, and Bybit CEO Ben responded to the requests on twitter confirming that USDT contracts were in the pipeline. 

USDT On Bybit – How Does It Work?

Traders will notice that there are several significant differences between the Linear Perpetual Contract settled in USDT with our existing Inverse Contract. 

Check out our video tutorial for a quick look at how USDT Perpetual Contracts work on the Bybit Platform:

Let us take a deeper dive into some of the differences between the two contracts.

Hedging:

-Traders can now hold both long and short positions concurrently. Under isolated mode, traders can select different leverages on the long and short sides. There is also an option to add extra margins to a position or even choose Auto Margin Replenishment (AMR). For instance, some traders may choose to open a long-term long position with low leverage and a short position with higher leverage to capture speculative opportunities.

– In cross-margin mode, if you have a long and short position at the same time, the hedged position will never get liquidated. 

Maximum Fund Utilization – Shared Unrealized Profit & Loss (PnL)

– Under cross-margin, unrealized PnL can be used for other positions and even across contracts. Imagine having BTC/USDT paired with some floating profits, and a trader wants to make a trade on ETH/USDT. Traders can utilize that floating profit to execute a trade on ETH/USDT. The inverse works as well. If you are sustaining a loss with BTC/USDT and making a floating profit with ETH/USDT, you may use your floating profit to prevent the BTC/USDT position from being liquidated. 

Take-Profit/Stop-Loss (TP/SL) Features:

– Traders can find the TP/SL setting at the order placement window. Relocating the feature here gives traders the option to directly set TP/SL limits when placing a new order. 
(Note: The function is no longer available at the order confirmation window) 

3 New Quick-Set Features:

– Quick-open & quick-close position feature & quick-inverse current position in K-Line area

– Traders can now exit or flip their positions around directly on the chart.

Lower Margin Requirements: 

– Our margin requirements for most tiers are significantly lower than our competitors and a more substantial step-up for each tier.

These are just some of the many other excellent features we have in the pipeline for the USDT Linear Perpetual Contract functionality on the Bybit platform. 

We’re also launching a brand-new elite program called Bybit Most Valuable Feedbacker (MVF) for our users who provide valuable feedback for our platform. You can read more about the highly exclusive program here.

Our USDT promotional campaigns are well underway with the much-hyped about USDT Airdrop Bonanza with Pre-registration going live on 9 April – 12 April. Users who Pre-register to enjoy an additional 20% bonuses of their total airdrop bounty! 

Stay tuned to our Twitter and Blog for all the latest Bybit updates.