# Bybit Futures Trading, A Step-by-Step Guide to Perpetual Contracts and Risk Control Learn how to trade futures on Bybit: perpetual contracts, leverage, margin modes, liquidation risks, funding rates, and fees, with a practical ETH/USDT example. Source: https://nfvgh.top/bybit-futures-trading/ · based on the channel [Binances Club](https://www.youtube.com/channel/UCzH_et-Ij9LvCR14koxTW5g) · Video: [Bybit Futures Trading Explained | How to Trade on Bybit Futures](https://www.youtube.com/watch?v=dfBZ9fvyCOk) · 2026-10-27 ![Bybit Futures Trading, A Step-by-Step Guide to Perpetual Contracts and Risk Control](https://nfvgh.top/bybit-futures-trading/bybit-futures-trading.webp) ## Key takeaways - Bybit perpetual futures never expire and use funding rates to track spot prices. - Leverage up to 100x is available on Bybit futures, but higher leverage increases liquidation risk. - Cross margin uses the entire account balance as collateral; isolated margin limits risk to the position. - Trading fees on Bybit futures are typically 0.02% maker and 0.055% taker for perpetual contracts. - The liquidation price can be calculated using Bybit's built-in calculator before entering a trade. Bybit futures trading lets you speculate on crypto price movements with leverage, using perpetual contracts that never expire. To start, you need a Bybit account, deposit funds, choose a contract like ETH/USDT, set your leverage and margin mode, and then open a long or short position. This guide walks you through each step, explains the risks, and shows how to manage a trade from entry to exit. You can register and explore Bybit's futures platform via the [Bybit partner link](https://partner.bybit.com/b/btclub). ## What Are Perpetual Futures on Bybit Perpetual futures are derivative contracts that track the price of an underlying asset without an expiry date. Unlike traditional futures, they use a funding rate mechanism to keep the contract price close to the spot price. On Bybit, perpetual contracts are available for major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and many altcoins, paired mostly with USDT. Traders can go long (buy) if they expect the price to rise or short (sell) if they expect it to fall. The funding rate is exchanged periodically between longs and shorts, typically every 8 hours, and can be positive or negative depending on market sentiment. This allows traders to hold positions indefinitely, but funding costs can accumulate over time. ## Setting Up Your Bybit Futures Account Before trading futures, you need to create a Bybit account and complete identity verification. Deposits can be made in crypto or via fiat channels, depending on your region. Once your account is funded, navigate to the 'Derivatives' or 'Futures' section on the Bybit platform. Bybit offers a unified trading account where you can trade spot, futures, and options. For beginners, it's recommended to start with the demo trading feature to practice without risking real funds. The demo account mirrors the live trading environment and provides virtual funds to test strategies. ## Understanding Margin Modes and Leverage Bybit offers two margin modes: cross margin and isolated margin. In cross margin, your entire account balance is used as collateral for all open positions, which can help avoid liquidation but also puts your whole balance at risk. In isolated margin, only the funds allocated to a specific position serve as collateral, limiting potential losses to that position. Leverage allows you to control a larger position with a smaller amount of capital. Bybit offers leverage up to 100x for some contracts, but higher leverage significantly increases the risk of liquidation. For example, with 10x leverage, a 10% price move against your position can wipe out your margin. It's crucial to set leverage according to your risk tolerance and use stop-loss orders. ## Calculating Liquidation Price and Using the Calculator Liquidation occurs when your position's margin falls below the maintenance margin requirement, and the exchange automatically closes the position to prevent further losses. Bybit provides a liquidation calculator that helps you estimate the price at which your position would be liquidated based on your entry price, leverage, and margin mode. To use it, enter the contract, position size, entry price, and leverage; the calculator will show the liquidation price and the initial margin required. This tool is essential for risk management, as it allows you to set stop-loss levels above the liquidation price to avoid forced closure. ## Step-by-Step ETH/USDT Trade Walkthrough Let's walk through a practical example using ETH/USDT perpetual futures. 1. Choose the ETH/USDT contract from the markets list. 2. Select cross or isolated margin; for this example, we'll use isolated. 3. Set leverage to 10x. 4. Enter the position size, for instance, 0.1 ETH. 5. Choose order type: market or limit. A market order executes immediately at the best available price. 6. If you expect ETH to rise, click 'Buy/Long'; if you expect it to fall, click 'Sell/Short'. 7. After opening, you can monitor your position in the 'Positions' tab, where you can set stop-loss and take-profit orders. 8. To close the position, click 'Close' by market or limit. For example, if ETH is priced at $2,000 and you open a long with 10x leverage, your initial margin is $200 for 0.1 ETH (0.1 * 2000 / 10). If the price rises to $2,100, your profit is $10 (0.1 * 100), which is a 5% return on margin. If the price falls to $1,900, you lose $10. With 10x leverage, the liquidation price would be approximately $1,818 (excluding fees). ## Managing Risk with Funding Rates and Fees Funding rates are periodic payments between long and short traders to keep the perpetual contract price aligned with the spot price. On Bybit, funding is settled every 8 hours. If the funding rate is positive, longs pay shorts; if negative, shorts pay longs. The rate is displayed in the contract details and can vary. Trading fees on Bybit futures are competitive: maker fees are 0.02% and taker fees are 0.055% for perpetual contracts. These fees apply to both opening and closing positions. It's important to factor in funding costs and fees when holding positions for extended periods, as they can erode profits. ## All Links from the Video - [Bybit registration and bonus](https://partner.bybit.com/b/btclub) - [KCEX exchange](https://www.kcex.com/register?inviteCode=Q4R413) ## Conclusion Bybit futures trading offers a powerful way to speculate on crypto prices with leverage, but it requires careful risk management. Understanding perpetual contracts, margin modes, leverage, liquidation, and fees is essential before trading with real funds. Practice on demo trading and use tools like the liquidation calculator to avoid costly mistakes. For a visual walkthrough, check out the video by Binances Club, which provides a step-by-step demonstration. Ready to start? [Sign up on Bybit](https://partner.bybit.com/b/btclub) and explore the futures platform today. ## Questions & answers **What is the minimum deposit to start trading futures on Bybit?** Bybit does not impose a strict minimum deposit for futures trading, but you need enough funds to cover the initial margin and potential fees. For example, with 10x leverage on ETH/USDT, a small position might require around $10-20. **How does leverage affect liquidation on Bybit?** Higher leverage reduces the margin required but brings the liquidation price closer to your entry price. With 100x leverage, a 1% adverse price move can liquidate your position, while 10x leverage tolerates a 10% move. **Can I practice futures trading on Bybit without real money?** Yes, Bybit offers a demo trading feature that provides virtual funds to simulate real market conditions. You can access it from the trading interface and test strategies risk-free. **What are the trading fees for Bybit futures?** Bybit charges maker fees of 0.02% and taker fees of 0.055% for perpetual futures contracts. These fees apply to both opening and closing trades, and may be lower for high-volume traders.