Bybit Commissions

At the stock exchange Bybit (bybit.com) Commissions on trading operations on derivatives are charged according to the classical scheme – taker/maker. A maker is a trader who creates liquidity by placing limit orders to buy at a price below the market and to sell at a price above the market. Takers place orders at market prices which are sold immediately, i.e. they “take away” liquidity. That’s why the percentages are different for them. But in spot trading, the interest is the same for both traders.

 

When trading derivatives

On the Bybit platform, interest is charged on each executed order. The required amount is deducted from the account balance, that is, the initial margin is not affected. Liquidity providers, makers who provide trading intensity, receive a bonus, for them the trading commission is not even zero, but negative. Takers who take liquidity at market prices immediately are charged a certain percentage depending on trading conditions.

Inverse contracts

Perpetual inverse contracts on the Bybit exchange imply the use of the base currency BTC/ETH/EOS/.XRP. When calculating margin, profit and loss, it is necessary to use the American dollar as the quoted currency and crypto from the list as the base currency. The percentages for these pairs are given in the table. Although inverse perpetual contracts are quoted in USD, profit and loss are calculated in the base currency, from the list.

As explained on the crypto exchange, this was done so that transactions in dollars at small prices could be typed in whole numbers on the keyboard rather than many decimal places in BTC. In inverse contracts, there is a risk of loss when holding the underlying Cryptocurrencies because its price changes quickly. This implies hedging of positions. In the section “Trading History” you can see what rates are applied for each specific transaction.

USDT contract

The USDT contract on the Bybit exchange is a perpetual linear contract whose margin is calculated in USDT. Since USDT is used as a margin, there is no need for hedging, in this sense, the USDT contract is easier than the inverse contract.

But hedging is practiced when trading USDT contracts with leverage. This is a risky type of trading and you can learn more about it by following this link. In this context, it is important that when a trader closes a hedged position, the interest charged is calculated based on whether the order was handled by a maker or a taker.

Spot trading

Bybit crypto exchange charges the same 0.1% rate for spot trading from tokens and makers. The amount charged also depends on the cryptocurrency being bought. Nothing is charged for a cancelled order or for an unexecuted part of an order.

Funding

Funding on Bybit crypto exchange is a way of tying the last transaction price to the global spot price. The funding percentage is calculated between buyers and sellers on the exchange every 8 hours, at 11:00 AM, 7:00 PM and 03:00 PM MSC. The financing rate can be seen in the center of the trading terminal. When the funding rate is positive, buyers pay interest to sellers. When the funding rate is negative, traders in shorts pay interest to buyers holding a long position.

Traders receive or pay interest only when there are open positions. The money is charged from the client’s balance or, if there are not enough coins on the balance, deducted from the margin. In the latter case, the commission can be high because it depends more on the price of the cryptocurrency than when coins are on the balance. It takes about 5 seconds to calculate and charge the required amount. For crypto trading this is a long time, so during opening or closing a position the commission may not pass, neither from the trader who pays, nor from the trader who receives. In such a case Bybit will not compensate for possible losses.

Withdrawal fees

Cryptocurrencies withdrawn from Bybit exchange are charged a certain amount, which varies depending on the specific cryptocurrency. You should know that commissions for all assets are calculated from the price of Bitcoin. Commissions for other cryptocurrencies can be viewed at this link. For withdrawals on the Bybit exchange, the fee is fixed and the miner’s commission is dynamic. This is practiced to speed up transactions, so the final amount charged to customers is quite high, for almost all cryptocurrencies .