xStocks vs. CFDs vs. Perpetuals: 3 ways to trade stocks on Bybit

Bybit gives you three distinct ways to gain stock exposure from a single account, each with different mechanics, leverage and trade-offs. Whether you want tokenized shares you can hold indefinitely, leveraged CFDs on MT5 or crypto-native perpetual contracts that trade around the clock, there is a product built for your strategy. This article compares all three so you can choose the right one before you place your first trade.

Key Takeaways:

• xStocks are 1:1 backed tokenized shares with no leverage; TradFi CFDs and TradFi Perpetuals offer leverage with both long and short capability.

• TradFi CFDs run on MT5 during U.S. market hours; TradFi Perpetuals trade 24/7 on Bybit Derivatives with a funding rate instead of overnight swaps.

• Your choice depends on whether you want tokenized exposure, leverage, shorting or round-the-clock access.

What do all three products have in common?

Before diving into the differences, it helps to know what these products share. All three give you price exposure to U.S. stocks and ETFs, all are settled in USDT and none grant shareholder voting rights or involve physical delivery of shares. You access all three through a single Bybit account, which means no separate brokerage accounts or fund transfers between platforms. The differences — and they are meaningful — lie in leverage, trading hours, fee mechanics and the type of exposure you receive.

Why trade stocks on Bybit?

The clearest advantage is consolidation. You can hold Bitcoin (BTC), trade stock derivatives and build an equity position without ever leaving Bybit or converting between currencies. USDT is used across all three products, either for settlement, margin or contract trading, so capital moves efficiently between your crypto and stock positions.

Beyond convenience, the platform offers flexibility that traditional brokers cannot match. xStocks and TradFi Perpetuals both trade 24/7, meaning you can react to earnings announcements or macro news even when the New York Stock Exchange is closed. Fractional access to high-priced stocks removes the capital barrier for newer traders. Automation is built in: xStocks work with the Spot Grid Trading Bot, and TradFi CFDs are compatible with the TradFi Combo Bot for diversified portfolio strategies. Whether you are a long-term holder or an active trader, there is a workflow that fits.

What are xStocks?

xStocks are tokenized U.S. stocks and ETFs launched on Bybit Spot and Bybit Alpha in May 2025. You can access them from the Spot or Alpha trading page by searching for the desired xStock symbol. Each token is fully collateralized 1:1: for every xStock token in circulation, the issuer (Backed, a MiFID II-compliant firm) holds the corresponding share with a regulated custodian. Rather than a derivative, xStocks are tokenized assets designed to provide 1:1 backed exposure to the underlying share.

Trading is available 24/7 and settled in USDT. Unlike TradFi CFDs and TradFi Perpetuals, xStocks don't offer leverage or short-selling. Corporate actions such as splits and dividends are reflected through an on-chain Multiplier that adjusts each token's share representation rather than through cash payments. xStocks are also transferable on-chain (Solana and Mantle), which means you can move them to an external wallet if needed. The holding cap is 300,000 USDT equivalent per token.

What are TradFi CFDs?

A contract for difference (CFD) gives you price exposure to a stock without owning it. You can access Bybit TradFi from the navigation bar by selecting Trade → TradFi, where MetaTrader 5 (MT5) is integrated directly with your Bybit account. This gives you the full suite of MT5 tools (Expert Advisors, custom indicators and copy trading) while using USDT or BYUSDT as margin. BYUSDT earns yield while held as collateral. 

TradFi CFDs support up to 5x leverage and allow both long and short positions. Trading hours follow U.S. market sessions, so you cannot open new positions outside those windows. An overnight swap applies daily (Quantity × Price × Swap Rate% ÷ 360), with a three-day charge applied on Wednesdays to account for the weekend. Dividend adjustments are applied automatically: long positions receive a credit and short positions are debited (with 30% withholding applied on U.S. stocks). Liquidation triggers at 50% margin level.

What are TradFi Perpetual Contracts?

TradFi Perpetuals are USDT-denominated perpetual contracts that track the price of U.S. stocks and ETFs. You can access them from the Futures trading page by selecting Perpetual → USDT → Stock / Commodity from the symbol dropdown menu in the top-left corner.

Like TradFi CFDs, they offer leverage and support both long and short positions. Unlike TradFi CFDs, they trade 24/7.

That round-the-clock access is their defining feature. When a company reports earnings after the closing bell or a macro event moves overnight futures, TradFi Perpetuals let you act immediately rather than waiting for the next market open. The cost mechanism is a periodic funding rate (the same structure used by crypto USDT Perpetuals) rather than a daily overnight swap. Bybit applies mark price deviation limits to keep TradFi Perpetuals aligned with the index price, while the index price itself uses a smoothing mechanism that adapts across market open, closed and transition periods. Be aware that earnings releases can cause significant price gaps, and spreads are typically wider during market closures due to reduced liquidity.

xStocks vs. TradFi CFDs vs. TradFi Perpetuals: Side-by-side comparison

Which product is right for you?

Which one should you choose? It depends on how you plan to trade:

• Want tokenized exposure with no funding or overnight financing costs and no leverage: choose xStocks.

• Want leverage, short selling, dividend adjustments and MT5 tools or Expert Advisors: choose TradFi CFDs.

• Want leverage, short selling and 24/7 access with crypto-native execution: choose TradFi Perpetuals.

• Day trader who values traditional order execution and copy trading features: TradFi CFDs fit best.

• Portfolio builder who wants automated diversification: TradFi CFDs via TradFi Combo Bot.

• Long-term holder who wants automated strategy management: xStocks via Spot Grid Bot.

• Combining products: you can hold xStocks for long-term backed exposure while using TradFi Perpetuals for short-term leveraged trades on overnight price moves. Because both draw from the same Bybit account, you can shift USDT between them without friction.

Risks and considerations

All three products share a core set of risks. Stock price risk affects every product: if the underlying equity falls, all three positions fall. Leverage risk applies to TradFi CFDs and TradFi Perpetuals: amplified exposure means both gains and losses scale with your leverage ratio, and margin calls or liquidation can result in the total loss of your margin. Because all products settle in USDT, systemic stablecoin risk exists across the board. None of the three grant voting rights or shareholder claims.

Beyond those shared risks, each product carries its own considerations:

• xStocks: Issuer and custodian risk rests with Backed; tokens may depeg from the underlying share price in low-liquidity conditions or during market halts. The 300,000 USDT holding cap limits position size, and xStocks are restricted in many jurisdictions including the EEA, the UK and Australia.

• TradFi CFDs: The overnight swap accumulates daily (with a three-day charge on Wednesdays), which makes long holding periods progressively more expensive. Liquidation triggers at 50% margin level, and you cannot react to after-hours events while the market is closed.

• TradFi Perpetuals: Funding rate costs can compound in strongly trending markets. Gap risk from earnings releases or overnight events can cause sudden mark-price moves. Spreads widen and liquidity thins when the underlying market is closed, and the mark price deviation cap of ±5% means execution during volatile off-hours periods may differ from the live index price.

The bottom line

Each product serves a different strategy, and Bybit is one of the few platforms that offers all three from a single account. xStocks suit long-term holders who want 1:1 backed exposure they can hold around the clock without funding payments or overnight swap charges. TradFi CFDs suit active traders who want leverage, shorting and dividend adjustments during market hours with the full MT5 toolset. TradFi Perpetuals suit crypto-native traders who want leveraged stock exposure that never closes, even when NYSE does.

Choose the product that matches how you trade, or combine them. Head to Bybit to explore xStocks on Bybit Spot, TradFi CFDs via the MT5 integration or TradFi Perpetuals on Bybit Derivatives and start building your stock strategy today.

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