DUBAI, UAE, Nov. 23, 2023 /PRNewswire/ — Bybit Institutional, the institutional arm under Bybit – the world’s third-largest crypto exchange by volume, announced a significant enhancement to its Portfolio Margin Mode, now incorporating spot trading capabilities. This latest upgrade empowers traders to seamlessly integrate spot positions into their hedging strategies, bolstering their risk management practices amidst the dynamic cryptocurrency landscape.
In the previous version of Portfolio Margin Mode, USDC and USDT derivatives of the same currency were grouped into a single risk unit, and stress testing was conducted to determine the worst-case scenario margin requirement. This innovative approach limited the potential for margin reductions.
Navigating Volatility with Enhanced Hedging Tools
In the current market environment characterized by persistent volatility, effective risk management stands as the cornerstone of successful crypto trading. Bybit’s expanded Portfolio Margin Mode addresses this critical need by enabling traders to leverage their spot holdings to hedge against potential losses in derivatives positions. This enhanced hedging capability bolsters traders’ confidence in navigating market fluctuations, potentially mitigating the impact of adverse price movements.
Key Advantages of Spot Integration into Portfolio Margin Mode:
- Reduced Margin Requirements: By offsetting profits and losses between spot and derivatives positions, traders can potentially achieve lower overall margin requirements, enhancing capital efficiency.
- Seamless Integration: Spot positions integrate seamlessly into the Portfolio Margin Mode, allowing traders to manage their entire portfolio within a single platform.
Optional Spot Hedging Participation
Bybit empowers traders with the flexibility to choose whether to participate in spot hedging for spot prices. Spot inclusion in portfolio margin hedging is not enabled by default, requiring traders to explicitly opt in. Upon switching, the system verifies whether the trader’s maintenance margin rate (MMR) remains below 100%, permitting switching only if the MMR meets this condition.
“Bybit’s commitment to innovation and trader empowerment is exemplified by the expansion of its Portfolio Margin Mode to include spot trading,” said Ben Zhou, Co-founder and CEO of Bybit. “This enhanced feature empowers traders to navigate market volatility with greater confidence, optimize risk management practices, and potentially reap the rewards of successful crypto trading.”
#Bybit / #TheCryptoArk
Bybit is a top-three cryptocurrency exchange by volume with 20 million users established in 2018. It offers a professional platform where crypto investors and traders can find an ultra-fast matching engine, 24/7 customer service, and multilingual community support. Bybit is a proud partner of Formula One’s reigning Constructors’ and Drivers’ champions: the Oracle Red Bull Racing team.
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