In this article, I’m going to show you how to actually take trades, enter trades, and make profits from your Bybit Futures trading. This article might be technical or tricky, but make sure you read it finish. As you may want to revisit this article as a guide during your trading process.
Steps involved to trade futures on Bybit
The very first thing I want to do right now is open up your Bybit account. I believe you should have an account and if you do nnot you can create one here : Sign up Bybit
- Next you should have credited your account with at least $10. Once you’ve done that you’re ready to start trading.
- One of the first things you want to do is go over to “Assets” and transfer your assets from your funding account to your unified trading account. That’s the first step. You want to click on this and put in the amount. Let’s say I want to fund $30—I would type that in and then click “Confirm.”
- Once you’ve confirmed that, you will see it show up. You’ll have the balance transferred from your funding account to your unified trading account.
Now you want to proceed to the next step because what we want to do right now is jump on the futures trading, which on Bybit is called “Derivatives.” Tap on that, and you’ll see the chart.
On the top left-hand corner, you can see the trading pair available (a trading pair is a Combination of two different cryptocurrencies traded against each other on an exchange: E.g- BTC/USDT, ETH/USDT and lots more).
Let’s say it’s BTC/USD you want to trade. You just search based on the signal and choose USDT. You can see beneath it the last traded price, the 24-hour high, 24-hour low, and other information.
Underneath the trading pair, you’ll see “Isolated” and other margin modes like “Cross Margin.”
Now, let me explain. When you’re using isolated margin, a specific margin is set for a particular trade. With cross margin, it’s different. For example, in isolated margin, if you have $200 in your account and you enter a trade with $20, if there’s a loss, the whole trade closes, and you lose the $20.
With cross margin, if you have $100 and enter a trade with $10, if you’re losing that $10, it could keep drawing from the remaining $90 in your account until everything is depleted (this is known as liquidation). That’s why for beginners, it’s best to stick with isolated trading.
Now, if you are by default on cross margin, switch to isolated margin mode.
Next is leverage, you have the option of opening a trade with more money than you have. For example, if you enter a trade with $20 and use 10x leverage, you’re effectively trading with $200. Similarly, if you enter a trade with $200 and use 10x leverage, you’re trading with $2,000.
You can increase leverage up to 50x, but it’s advisable to stay within 10x to 20x leverage to manage risk. If you use 50x leverage, a 1% loss could result in a large loss. Let’s say you have $100 and use 50x leverage—that’s $5,000 in trade. A 1% loss would result in losing $50 instantly. This is why it’s best to stick with lower leverage, like 10x.
If you enter a trade with $2, 000 and use 10x leverage, you’ll effectively be trading with $20,000. A 1% profit would mean earning $10, and a 1% loss works similarly.
After you’ve set your leverage, you want to look at the different order options: limit order, market order and a lot more. We’ll focus on these two for now. With a limit order, you specify the price at which you want to buy or sell a currency. With a market order, you buy or sell at the current market price.
Example of limit order, let’s say we have a signal to take a Trade on BTC/USDT. You’ll see the order price. Let’s set it to $6000 so when BTC/USDT gets to $6000 the order will be placed. For the quantity, I want to enter this trade with $200, but since I’m using 10x leverage, I’ll type in $2,000. Then, you can proceed to the next step.
On the next step, you’ll see TP and SL, which stand for “Take Profit” and “Stop Loss.” This is risk management. You can set it to take profit at a specific point or stop losses at a certain price to avoid losing more than you’re willing.
You can set your take profit to any amount of your choice lets say $65000 and stop loss to $58000 and you’d see your expected Profit and expected loss. Once everything is set, click “Confirm” to enter the trade.
