Derivatives trading on Bybit: everything you need to know

Most traders start with spot, where you buy and hold the asset outright. Derivatives work differently: instead of owning the underlying asset, you trade contracts whose value depends on an underlying asset, market or outcome. Most of Bybit's derivatives provide price exposure without owning the underlying, while also supporting leverage, short selling and hedging strategies. Bybit's derivatives suite spans crypto futures, options, TradFi Perpetuals, CFD and several specialized products. This guide maps every derivative product available on Bybit, explains how each one differs from spot and from each other, and points you toward the dedicated guide for each.

Key Takeaways:

• Bybit offers futures (perpetual and expiry), options, TradFi Perpetuals, CFD and several specialty derivatives products, with most accessible through the Unified Trading Account.

• Each product type has distinct fee structures, margin mechanics and risk profiles, so understanding the differences before choosing matters.

• Dedicated guides provide step-by-step instructions for getting started with each major derivatives product.

What is derivatives trading?

A derivative is a financial contract whose value is derived from an underlying asset, market or outcome. You are not buying or selling the asset itself — you are trading a contract linked to its price.

Compare that with spot trading, where purchasing 1 bitcoin (BTC) means you own 1 BTC outright. With a futures contract on BTC, you hold a contract that moves in value as BTC's price moves, but you never take custody of the coin.

Derivatives make it more direct and flexible to take long or short exposure, apply leverage and execute hedging strategies without touching the underlying asset. Spot Margin also enables leverage and short selling, but derivatives are purpose-built for these use cases across a wider range of instruments and structures.

Most Bybit derivatives are traded from the Unified Trading Account (UTA), which pools margin across products. CFD is the exception: it requires a dedicated MT5 CFD Account separate from the UTA.

The table below summarizes the key differences between spot, futures and options at a glance.

For a deeper introduction to futures, options and the core concepts behind derivatives trading, see our Options & Derivatives course.

Futures contracts on Bybit

Futures are the core of Bybit's crypto derivatives offering. A futures contract is a derivative whose value tracks the price of an underlying asset, allowing traders to take long or short exposure without owning the asset itself. Bybit offers both Perpetual and Expiry contracts.

Perpetual contracts have no expiration date. They use a funding fee mechanism (a periodic payment exchanged between long and short traders) to keep the contract price anchored close to the spot price. Depending on the funding rate and your position direction, you may pay or receive funding.

Expiry contracts have a fixed settlement date. At expiration, the contract auto-settles at the index price.

Settlement currencies

Bybit futures come in three settlement currencies, each with a different margin and P&L structure.

USDT-settled contracts hold margin and realize profit and loss in Tether (USDT). This is the simplest structure for beginners because your gains and losses are always denominated in a stablecoin you already hold.

USDC-settled contracts work similarly but use USDC. One notable difference is session settlement, which periodically converts unrealized P&L into realized P&L within the trading session.

Inverse contracts use the underlying cryptocurrency as margin and P&L currency. For example, a BTCUSD inverse contract requires BTC as margin and profits are denominated in BTC. Because both margin and P&L are denominated in the underlying crypto, the value of the collateral itself also fluctuates with the market.

Key mechanics

Leverage on major pairs goes up to 125x. Three margin modes are available: Isolated (margin for a single position is capped at what you allocate), Cross (margin draws from the broader account balance) and Portfolio (margin is calculated across your entire UTA). Liquidation is triggered by the mark price, the fair-value price Bybit calculates from external index sources, rather than the last traded price.

Options trading on Bybit

An options contract gives the buyer the right to a payoff based on the price of an underlying asset relative to a specified strike price. Bybit Options are European-style, meaning they can only be exercised at expiration, and are cash-settled in USDT.

Call options provide bullish exposure and gain intrinsic value when the underlying settles above the strike. Put options provide bearish exposure or downside protection and gain intrinsic value when the underlying settles below the strike.

For the buyer, the maximum loss is limited to the premium paid upfront, excluding applicable fees. The seller takes the opposite side and receives the premium, but faces risk that can far exceed it.

Underlyings and interfaces

Bybit Options currently cover BTC, ETH, SOL, MNT, XRP, DOGE, XAUT (tokenized gold) and HYPE. The XAUT listing is notable: Bybit was the first crypto exchange to offer options on tokenized gold.

Three trading interfaces are available to match different experience levels.

• Easy Options: a simplified view designed for traders new to options. Strike selection and expiry are streamlined.

• Discover: a guided interface presenting pre-built strategy templates so you can select an outlook and see which structure fits.

• Pro: the full options chain with access to greeks, implied volatility and multi-leg order entry.

TradFi derivatives on Bybit

The TradFi section on Bybit brings together products for accessing traditional financial markets such as stocks, forex, commodities and indices. Its derivatives offering includes TradFi Perpetuals, CFD and Perp Options.

TradFi Perpetuals

TradFi Perpetuals are Bybit-native perpetual contracts on stocks, commodities and indices, traded directly from the UTA. The core mechanics are similar to crypto perpetuals: positions are USDT-settled and use perpetual-style margin and funding mechanisms. No additional account setup is required. Trading is available 24/7, including when the underlying traditional market is closed, although liquidity and pricing conditions may differ outside regular market hours.

CFD

A contract for difference (CFD) is a derivative that tracks price movements of an underlying instrument without conferring ownership. Bybit's CFD product covers 400+ instruments spanning forex, metals, indices, US stocks and commodities, with leverage up to 500x on forex pairs.

CFD on Bybit requires a dedicated MT5 CFD Account, which is separate from the UTA. USDT and BYUSDT are displayed within the MT5 environment as USDx at a 1:1 ratio. Two fee modes are available: Zero-Fee mode (costs are embedded in the spread, with no explicit commission) and Tight-Spread mode (raw spreads plus a fixed commission per lot). CFD positions held overnight may incur swap fees. Unlike crypto perpetuals, CFD follows traditional market hours rather than running continuously.

Perp Options

Perp Options are options contracts written on TradFi Perpetuals, covering stocks, indices and ETFs. This is an industry-first product type. Like Bybit's crypto options, Perp Options are European-style and USDT-settled, but they trade 24/7 through the UTA rather than following market hours.

Specialized derivatives products on Bybit

Beyond standard futures and options, Bybit offers several specialized derivatives products designed for specific markets or trading scenarios.

• Event Futures: Futures tied to real-world events such as football matches, with leveraged trading available throughout the event. USDT-settled.

• Pre-Market Perpetuals: Perpetual contracts on tokens before their official listing on Bybit Derivatives. Positions transition to standard Perpetuals once the applicable listing conditions are met.

• Innovation Zone: Perpetual contracts on newer, higher-risk projects, with higher trading fees and different reward/discount eligibility.

• Bybit Odds: Fixed-return contracts based on crypto price direction, with Up/Down, Price Target and Price Range contract types across short countdown periods.

Ways to automate or copy derivatives trades

If you prefer not to place every trade manually, Bybit provides tools that execute derivatives strategies on your behalf. These are features built on top of the derivatives products above, not separate products.

Copy Trading

Bybit offers three Copy Trading variants. Copy Trading Classic mirrors a Master Trader's USDT Perpetual trades in your account, with profit-sharing paid to the Master Trader when you earn. Copy Trading Pro uses a closed-end fund structure where a Pro Master manages pooled capital across Spot and Derivatives. TradFi Copy Trading replicates a Master Trader's CFD trades via the MT5 environment. Each variant has its own eligibility criteria, profit-sharing model and account structure.

Trading Bots

Bybit's bot suite covers several futures automation strategies. The Futures Grid Bot automates range-bound trading by placing buy and sell orders at preset intervals across a price range. The Futures Martingale Bot adds to a position after adverse price moves, increasing exposure in the direction of the original trade. The Futures Combo Bot and TradFi Combo Bot automatically rebalance multi-contract portfolios across positions. All bots use the same fee rates as their underlying product.

How to start trading derivatives on Bybit

Before placing your first trade, make sure you have the following in place.

• A verified Bybit account (KYC Level 1 minimum).

• Funds in the appropriate account: the UTA for futures, options, TradFi Perpetuals and Perp Options; or an MT5 CFD Account for CFD.

• A working understanding of leverage and liquidation risk before committing real capital.

Choose the product you want to trade, make sure the appropriate account is funded, then follow the relevant guide for the full trading flow.

• Futures: Head to Trade > Futures. For the full trading flow, see How to trade crypto futures on Bybit.

• Options: Head to Trade > Options. For the full trading flow, see How to trade crypto options on Bybit.

• TradFi Perpetuals: Head to TradFi > Futures. For the full trading flow, see How to trade TradFi Perpetuals on Bybit.

• CFD: Head to TradFi > CFD. For the full trading flow, see How to use Bybit CFD to trade stocks, forex and more.

Demo Trading is also available for Futures if you want to practice without real funds.

What does derivatives trading cost on Bybit?

Bybit derivatives costs fall into four categories.

1. Trading fees: A maker/taker percentage is charged on each filled order. Maker fees apply to orders that add liquidity (limit orders resting on the book); taker fees apply to orders that fill immediately. Rates vary by product and your VIP or Pro tier.

2. Funding fees: Perpetual contract traders (crypto and TradFi) may pay or receive funding periodically depending on their position direction and the prevailing funding rate. This is not a fixed cost: the rate fluctuates with market conditions.

3. Options-specific costs: Buyers pay a premium upfront to open a position. At expiration, a delivery fee may also apply. Sellers receive the premium but take on the associated risk.

4. CFD costs: Zero-Fee mode builds the cost into the spread. Tight-Spread mode charges raw spreads plus a fixed commission per lot. CFD positions held overnight may incur swap fees.

Copy Trading and Trading Bots use the same fee rates as their underlying product. For current rates across all products, see the Bybit fee schedule and the Bybit VIP program page.

Benefits and risks of derivatives trading

Benefits

• Directional flexibility: Futures and other derivatives can provide both long and short exposure, allowing traders to express views on rising or falling markets.

• Capital efficiency: Leverage lets you control a larger notional position with less capital upfront.

• Hedging: Offset risk in spot holdings using futures or options without having to sell the underlying asset.

• Breadth: Crypto, TradFi, specialty products and 400+ CFD instruments are accessible from one platform.

• Automation: Copy Trading and Trading Bots let you access derivatives without managing every individual trade.

Risks

• Leverage amplifies losses: The same multiplier that magnifies gains applies equally to losses. A modest adverse move can erase the margin on a position.

• Liquidation: When your margin falls below the maintenance threshold, your position is liquidated. Under Cross margin mode, the margin available extends to your full account balance, meaning more is at risk than under Isolated mode.

• Funding and swap costs: Funding fees on perpetuals may work for or against you depending on position direction and the current rate. CFD positions may incur overnight swap fees. Over longer holding periods, funding and swap payments can materially affect P&L.

• Options time decay: The time-value component of an option generally declines as expiration approaches, while sellers can face losses that exceed the premium received.

• No guaranteed returns: Past performance of Master Traders and Trading Bots is not indicative of future results.

The bottom line

Derivatives expand what is possible beyond spot. Between futures, options, TradFi Perpetuals, CFD and specialized products, Bybit provides multiple ways to gain derivatives exposure across crypto and traditional markets. The tradeoff is complexity and risk: every product carries the possibility of losing more than you intended if risk controls are not in place. Start with one product, understand its risk and cost structure, and use Demo Trading where available before committing real funds.

Ready to begin? Sign up on Bybit or head to Trade > Futures to explore the full derivatives suite.

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