Not the change of margin requirement for hedged positions of USDT.
Bybit has updated the logic of the USDT contract’s full position hedging margin.
See the existing (old) and new logic of the USDT contract’s full position hedging margin below.
The old logic of USDT contract’s full position hedging margin
Suppose the wallet balance=3000USDT, and there is no transaction fee.
The user uses the full position mode to buy a 2BTC BTCUSDT position at a price of 10,000 USDT, the starting margin=10,000*2/100=200USDT, and the available margin is 2800USDT
When the price drops to 9K, the user sells a 4BTC BTCUSDT position. The initial margin is 9,000*4/100=360USDT.
The original long position resulted in a floating loss of 2000USDT, and the current account available balance is 440 USDT.
Now the price has fallen to 8,000USDT, the current long position is losing 4000USDT, and the short position is gaining 4000USDT.
The current hedge margin occupancy logic value is the net profit and loss of long and short sides, so it is 0 here.
The initial margin for long positions is 200USDT, the initial margin for short positions is 360USDT, and the available account balance is 2440USD.
The above calculation method does not lock in the user’s hedging loss of 2000USDT when the user establishes a hedging position and finally allows the user to have the more free margin to pay the funding fee or to establish more positions, resulting in the final position without sufficient margin and its unsettled loss May exceed the actual losable amount.
The new logic of USDT contract’s full position hedging margin
The user uses the full position mode to buy a 2BTC BTCUSDT position at a price of 10,000 USDT, the starting margin=10,000*2/100=200USDT, and the available margin is 2800USDT.
When the price drops to 9K, the user sells a 4BTC BTCUSDT position. The initial margin is 9,000*4/100 = 360USDT.
At this time, the 2000USDT floating loss generated by the hedged 2BTC long position will be used as a margin.
The available balance of the current account is 440 USDT.
Now the price has fallen to 8,000 USDT, we only need to consider that the unhedged short position of 2BTC has generated a floating profit of 2000USDT, and the available balance of the account is still 440 USDT (the floating profit cannot be used as the available balance).
The above optimization can ensure that the hedging position is occupied by sufficient available margin, and the user will not suffer excessive losses due to this, and there will be no situation in which the position on the other side is immediately liquidated after the unilateral position is closed.
Contact Bybit Support Team for more
Please check Bybit official website or contact the customer support with regard to the latest information and more accurate details.
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Comment by Hans
April 24, 2024
as I am trading here various assets, for me it's the most important feature. i mean, flexibility in tradable markets. i alternate trading styles, meaning that sometimes I trad...