What Is Bybit Unified Trading Account and How Does It Work?
Cryptocurrency is a revolutionary asset class that keeps evolving, and exchanges like Bybit continuously seek to provide users with better and more robust solutions. Many users typically manage multiple accounts on a trading platform. As Bybit's product line expands into Spot, Derivatives, and Options, you might wish to unify your accounts for better trade optimization. With the Bybit Unified Trading Account, you will now be able to manage all your assets and funds in one account.
Bybit's Unified Trading Account is open for all traders and users alike to access better risk management, higher capital efficiency, cross-collateral margining, and enhanced flexibility. Let's take a look at how the Unified Trading Account works.
What Is a Unified Trading Account?
The Bybit Unified Trading Account enables easy and efficient trading by allowing users to consolidate assets and trade multi-currency, Spot, Spot Margin, USDT and USDC Perpetuals, and USDC Options in a single account.
All assets can be consolidated without transferring assets between accounts for a comprehensive range of trading products and margins using their U.S. dollar-pegged value. This means that traders can now automatically borrow different cryptocurrencies if the overall portfolio value is sufficient. For instance, even if you don't have ETH in the account, you can still settle trades in ETH – ETH liability is automatically generated, and interest is charged, if applicable.
The Unified Trading Account calculates overall risk and assets on a USD basis at an account level. Given distinct liquidity profiles, assets will be converted at different rates into USD. The USD value of your Unified Trading Account is based on the following calculation:
Total Asset Value (in USD) = Number of Assets × USD Index Price × Conversion Ratio
Asset | Conversion Ratio |
USDC | 100% |
USDT | 99.5% |
BTC | 95% |
ETH | 95% |
Your profits and losses are netted within your account and margining is determined across assets. That way, losses on a single position will only trigger liquidation if the account maintenance margin has not been met.
Advantages of Bybit Unified Trading Account
The Bybit Unified Trading Account offers several unique advantages as highlighted below:
Multi-Asset Support
Bybit offers a range of advanced trading products, including Spot, Perpetual Contracts, and USDC Options, often with generous leverages. The Unified Trading Account allows users to manage multiple assets across the crypto ecosystem in one portfolio.
Users can access more than 60 assets as collateral, such as USDT, USDC, BTC and ETH. These assets serve as margin collateral calculated on a total account level rather than for each position. The system automatically calculates the available margin based on the prevailing conversion rate.
Traders can transfer all accepted cryptocurrencies into the Bybit Unified Trading Account and trade any currency as long as the account has sufficient funds overall.
The account triggers auto-borrowing if the asset equity drops below zero due to market movements. The borrowed amount is interest-free within a specified range. For example, assume that Trader A has BTC in his account, but no USDT. When Trader A opens a USDT Perpetual Contract and generates a trading fee of 10 USDT, the system will auto-borrow 10 USDT and count it as Trader A's liability.
Enhanced Asset Uses
The Bybit Unified Trading Account promotes the efficient use of assets in the following ways:
- Cross-Asset Collateral: Traders can use the USD value of all supported collateral assets when opening trades. Even if you don't already own a coin such as USDT or USDC, you can place trades if you have sufficient total account value.
- Netted Profit and Loss: Profit and losses are combined for margin calculation, which can reduce your chance of liquidation in a volatile market.
- Margining with Unrealized Profits: Any unrealized derivative profits count towards margin requirements. Your improved capital efficiency allows you to open new positions based on unrealized mark-to-market gains.
Advanced Risk Management
Risk management is particularly robust because the margin is calculated at the account level rather than on the position. Trading profits and losses will offset one another, and you can avoid risk amplification because single losses don't necessarily trigger liquidation. Further, you can apply risk management strategies across a diversified portfolio, thereby improving your risk profile.
Who Should Use Bybit Unified Trading Account?
The Bybit Unified Trading Account is ideal for all traders alike as it provides convenient one-click access all across our five core trading products. Moreover, the account's functionalities are simple to use and relatively suitable for all traders, from retail spot traders to institutional traders who prefer a consolidated account.
With the official launch on Jan 25, 2023, Unified Trading Account is now open to all users. You can access the account via the Bybit app, the Bybit website, or API.
The Bybit Unified Trading Account comes with the benefits of a unified margin account, offering users access to more trading assets in one account and a simplified method to trade Spot, Derivatives, and manage their portfolios on Bybit.
Conclusion
If you’re looking for cross-asset trading and margining of Spot leverage, Perpetual Contracts, and USDC Options, The Bybit Unified Trading Account will bring to you all of these functions with simplicity of use. What’s more, you will also get to enjoy higher capital efficiency and full portfolio visibility. So, to enjoy the flexibility and convenience of owning a single account, make sure to upgrade to a consolidated Unified Trading Account today!
