Bybit offers two margin models in options trading: regular margin and portfolio margin.

Regular margin

Bybit options default to regular margin. Regular margin mode uses all available balances of the trader in the corresponding trading pair to avoid forced liquidation.

Taking BTC options as an example, when all available USDC balances in your USDC contract account are lower than the maintenance margin, the system will force liquidation.

For more information on forced liquidation, please refer to the article Forced Liquidation Process (Options).

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Portfolio Margin (temporarily unavailable, will resume in April 2022)

Portfolio margin is the margin required based on the overall risk requirements of a portfolio. This mode combines positions in futures and options portfolios to calculate user margin.

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The Portfolio Margin Account provides traders with the following potential benefits to maintain a portfolio balance of hedged positions:

  • Lower margin requirements
  • Higher leverage

To qualify for Portfolio Margin, your account must meet the following requirements:

  • Maintain a net asset value of not less than 10,000 USDC
  • No position in USDC account
  • There are no pending orders or conditional orders in the USDC account

Portfolio margin is based on risk level, available on eligible accounts and requires manual activation by the user.

In the portfolio margin mode, if the equity in your account is less than 10,000 USDC, the following two situations will occur:

If there are no positions and any pending orders in your account, the system will automatically switch to regular margin mode.

If you have a position or any pending order in your account, you can maintain the portfolio margin mode.

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