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12 avr. 2021

What are USDT Perpetual Contracts?

USDT is one of the range of cryptocurrencies available to trade on Bybit. Read everything you need to know about the USDT perpetual contract here.
Tether is a stablecoin that is pegged to different fiat currencies. USDT is pegged to the US Dollar and is issued by the company named Tether. This coin 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 profit and loss 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.

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.


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) across positions and contracts

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 close 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 feature 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.

Stay tuned to our Twitter and Learn Page for all the latest Bybit updates. Learn more about how to trade cryptocurrency and deploy some of the momentum trading styles or find out the best candlestick patterns to use today.

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