A Brief guide about Bybit Trailing Stop, Different type of perpetual contacts and CoinSwap (Part 3)

What is a Trailing Stop?

Let's start with Trailing Stop, “A trailing stop will allow a stop order would follow the last traded price based on a pre-set distance and direction and will automatically move to lock in the profit or stop loss.”

For example:

A trader opens a long position of BTCUSD contracts at 8,000 USD, and set a trailing distance of 500 USD.

• If the last traded price never exceeded 8,000 USD, the trailing stop will be triggered at 7,500 USD just like a normal stop loss.
• But let assume the price reached at 8500 USD so now the trailing SL moves to 8000 USD (500$ gap) and again if the price reaches at 9000 USD the SL will move to 8500 USD and so on.
• So basically in trailing SL your stop-loss moves the XXX $ you set for that particular order.

Setting up a trailing stop

User can edit their ongoing order and set a trailing SL, When setting up a trailing stop order. A trader has the option to set up a trigger price to trigger the placement of the trailing stop. This function allows a trader to trigger the trailing stop only when the position is in profit.

Example

Current Last traded price (LTP) is 7000 and trader is holding a long position. He wishes to place a trailing stop of distance 100 only when LTP has reach 8000.

• The trader simply have to enter 8000 in the Trigger price and 100 in the trailing stop.
• When LTP reaches 8000 the trailing stop order will be place and the starting trigger price of the trailing stop order will be 8000- 100 = 7900 USD

Different type of perpetual contacts — Inverse Perpetual vs USDT Perpetual

With the recent launch of USDT Perpetual contracts, you can see now that in Bybit we have 2 contracts type. Inverse vs USDT, ever wonder how each works and what sets them apart? We will try to understand just that in this next point.

What is Inverse Contract?

The Inverse contracts use BTC/ETH/EOS/XRP as the base currency. Traders need to confirm traded quantity in terms of USD (Quoted currency), and then use their base currency (such as BTC, ETH) to calculate margin, profit and loss. If a trader wants to trade BTCUSD contract, he must use BTC as his base currency. If he trades on ETHUSD contracts, he needs to hold ETH and so on.

What is USDT perpetual contract? How does it differ with Inverse perpetual contract?

USDT perpetual contract is a linear contract. The margin used for a linear contract is USDT. On the other hand, an inverse contract means if a trader would like to trade BTC/ETH/XRP/EOS contract, the underlying cryptocurrency has to be used as the margin to trade the respective contract. As compared to Inverse perpetual contract, USDT perpetual contract consists of the following:

- The calculation of margin and P&L of USDT perpetual contract is more direct as compared to Inverse perpetual contract. When trading 1 BTC and the price moves by 100 USDT, the profit/loss of the trader will be 100 USDT. The P&L chart of the USDT contracts will be a linear curve.

- Inverse perpetual contract is traded based on the underlying cryptocurrency. Traders need to hold a much volatile BTC/ETH/EOS/XRP as margin. Hence, even if traders choose not to trade, holding the cryptocurrency itself involves risks. On the other hand, USDT perpetual contract uses stablecoin as margin and thus, traders do not have to hedge their position to avoid the risk of holding the cryptocurrency.

Bybit CoinSwap

As we discussed on Inverse Contract If a trader wants to trade BTCUSD contracts he must use BTC as his base currency. If he trades on ETHUSD contracts, he needs to hold ETH and so on. But to further enhance the trading experience and convenience for our customers, traders are now able to exchange their coins directly on Bybit now for any of the other four cryptocurrencies available on the platform — BTC, ETH, EOS, XRP & USDT.

Step 1
Proceed to the Assets page of your account and click on Assets Exchange.

Step 2

i. Choose the coin that you wish to use for conversion and select the coin you wish to convert to. The following screenshot is an example of exchanging BTC to ETH.

ii. Next, enter the number of coins that you wish to use for conversion either by manually entering the number of coins or by using the percentage (%) function to convert the indicated % of coins from your available margin.

iii. Click on “Get Quotation”, and you will see the current conversion rate which is referenced to the current index price.

iv. Confirm the conversion by clicking on “Exchange”.

Step 3
After clicking on “Exchange”, you will see a pop-up message with disclaimer information.

Due to the slight delay between getting the quote and confirming the transaction, the Real-Time Exchange Rate at the moment that you confirm the transaction on the pop-up windows will be applied on the transaction. Therefore, it might be slightly different (better or worse) from the calculation. If the difference between Real-time Exchange Rate and Quotation Rate is more than 0.5%, this request will be automatically cancelled.

Then, click on confirm and the coin exchange is completed.

Important Notes

1. There will be a fixed fee charged applies for each assets exchange request. By exchanging your assets directly on Bybit, traders do not have to pay two-way transfer miner fee and a fixed fee is charged regardless of the exchange amount. This signifies that the more the exchange amount, the lower the fee percentage is charged.

• The bonus balance cannot be converted to other coins. It will not be forfeited upon submitting any coin conversion request as well.
• The Real-Time Exchange Rate is based on the best quote price from several market makers according to the current index price.
• The Per Transaction limit / 24 hours exchange limit for a single account is shown below:

That's it for today, Stay tuned for next Bybit Talk. :) Don't forget to join Bybit Official Telegram and Local communities.

English (Global Group): https://t.me/BybitEnglish
French: https://t.me/BybitFrench
Hebrew: https://t.me/BybitHebrew
Indian: https://t.me/BybitIndian
Japanese: https://t.me/BybitJapanese
Korean: https://t.me/BybitKorean
Russian: https://t.me/BybitRussian
Spanish: https://t.me/BybitSpanish
Turkish: https://t.me/BybitTurkish
Vietnamese: https://t.me/BybitVietnamese