Bybit is the second largest crypto perpetual exchange in the world, holding around 18-20% of global open interest on Bitcoin and Ethereum futures. That level of dominance makes it a primary venue for traders seeking deep liquidity, fast execution, and reliable derivatives infrastructure.

Still, numbers alone do not tell you if Bybit fits your needs. Fees, maximum leverage, supported trading pairs, and country restrictions often matter just as much as headline volumes.

Read our full Bybit Futures Review to see how the platform actually stacks up for you. 👇

What Is Bybit Futures?

Bybit Futures is the derivatives division of Bybit, a cryptocurrency exchange founded in 2018 and headquartered in Dubai since 2023. Over 77 million users trade on the platform worldwide, making it the second-largest crypto futures exchange by daily volume.

The centralized exchange enables traders to speculate on cryptocurrency price movements without owning the underlying assets, using margin-backed contracts instead of spot holdings. Supported leverage reaches up to 125x on Bitcoin and Ethereum, while altcoin markets usually allow between 25x and 50x.

Bybit lists three contract categories: perpetual swaps, dated futures, and pre-market perpetuals intended for early trading of unreleased digital tokens. Perpetual swaps rely on funding rate payments every eight hours, while dated futures settle automatically on their respective expiration dates.

How to Use Bybit Futures

Trading on Bybit Futures involves account creation, funding, setting preferences, and executing orders through an intuitive derivatives interface. Here are the main steps involved:

1. Create and Verify Account: Register with email and password, then complete mandatory KYC verification using government-issued identification for trading access.
2. Secure Your Profile: Enable two-factor authentication, withdrawal address whitelisting, and anti-phishing codes to strengthen overall account security protections.
3. Deposit Trading Funds: Transfer USDT, USDC, BTC, or ETH into your Bybit hot wallet, or purchase through integrated fiat gateways.
4. Access Trading Dashboard: Navigate to the Derivatives section, select desired contract type, and load the real-time market interface with charting tools.
5. Set Margin and Leverage: Choose between cross or isolated margin, then configure leverage level up to 125x depending on asset.
6. Place an Order: Enter quantity, select order type, and confirm whether to go long or short based on market expectations.
7. Attach Risk Controls: Configure take-profit and stop-loss triggers directly at entry to manage potential downside and lock in profits.
8. Monitor Open Position: Track liquidation price, margin ratio, and funding rates while adjusting leverage or margin allocation as required.
9. Close and Withdraw: Exit via limit or market close, then transfer realized profits to external wallets after completing withdrawal confirmation.

Types of Futures Contracts on Bybit

Bybit Futures provides three categories of derivatives: perpetuals, inverse or dated futures, and early-stage pre-market perpetuals. Each category influences profit settlement, collateral requirements, and risk exposure, making it crucial for traders to distinguish their differences before committing capital.

1. USDT and USDC Perpetual Contracts

Perpetual futures are Bybit’s most traded products, allowing positions without expiration and settlement in stablecoins such as USDT or USDC. Traders benefit from predictable collateral value, customizable leverage up to 125x, and reduced volatility compared to crypto-collateralized contracts.

These contracts rely on funding rate mechanisms every eight hours, ensuring perpetual contract prices remain closely anchored to spot market benchmarks. Stablecoin settlement simplifies profit calculation, since gains and losses are realized directly in USDT or USDC rather than volatile crypto assets.

Key advantages of stablecoin perpetuals:

• No expiration dates, supporting long-term strategies.
• Stable collateral with reduced volatility.
• Broad selection of trading pairs beyond Bitcoin and Ethereum.

2. Inverse Perpetual Contracts

Inverse perpetual contracts on Bybit are collateralized and settled in the underlying cryptocurrency, such as BTC or ETH, instead of stablecoins like USDT. This means traders directly increase or decrease their crypto holdings depending on the profitability of each trade.

These contracts are popular with long-term holders seeking to accumulate more of a cryptocurrency, since profits are paid in the base asset. However, volatility in collateral value adds an additional risk layer, as margin requirements fluctuate with crypto price changes.

Notable features of inverse perpetuals:

• Settled in base cryptocurrency (BTC, ETH, or others).
• Profits and losses denominated in crypto, not stablecoins.
• Effective hedging tool for traders holding spot assets.

3. Expiry Futures Contracts

Expiry futures, sometimes called fixed-maturity, or dated contracts, include quarterly instruments that automatically settle at a specified expiration date. Unlike perpetuals, they do not use funding rates, making them suitable for longer-term positions and hedging strategies.

Settlement occurs in the collateral currency at the predetermined expiration, with profits or losses calculated against the index settlement price. Many professional traders use these futures for arbitrage opportunities or to align positions with specific time horizons.

Key characteristics of dated futures:

• Expiration-based settlement, usually quarterly or monthly.
• No funding rate costs for maintaining positions.
• Often used for hedging or calendar spread arbitrage strategies.

4. Pre-Market Perpetuals

Pre-market perpetuals are a unique Bybit innovation, giving traders early access to derivatives before the underlying tokens are officially listed. This feature enables positioning ahead of public markets, potentially capturing price moves during early discovery phases.

These contracts operate through auction-based price discovery, where bids and offers establish the initial trading price before continuous trading begins. Liquidity during the pre-market phase may be lower, creating higher volatility and wider spreads compared to established markets.

Considerations for pre-market perpetuals:

• Strategic early entry before token listings.
• Higher volatility due to limited liquidity.
• Best suited for experienced derivatives traders.

Bybit Supported Cryptocurrencies and Leverage

Bybit lists over 2,200 assets across its platform, offering one of the widest selections among centralized exchanges globally. Within derivatives, it supports nearly 800 perpetual futures pairs, according to Coingecko data, spanning Bitcoin, Ethereum, altcoins, DeFi tokens, meme coins, and metaverse assets.

Leverage on Bybit extends up to 125x for Bitcoin and Ethereum contracts, amplifying both profit potential and liquidation risks significantly. Mid-cap altcoins usually allow between 25x and 50x leverage, while smaller or more volatile pairs are limited to around 10x.

Smart Leverage products push exposure to 200x on select assets, structured to delay liquidation but carrying substantial inherent risk. Bybit further enforces a dynamic risk limit framework that reduces available leverage as position sizes grow, maintaining stability across markets.

Bybit Futures Fees and Funding Rates

Bybit applies a transparent maker-taker fee model, with rates decreasing progressively for higher-volume traders through its VIP program. Futures contracts carry some of the lowest fees in the industry, while funding payments operate separately between long and short traders.

Here are the main components Bybit Futures fees:

• Trading Fees: USDT futures contracts charge 0.055% taker and 0.020% maker, while USDC futures start lower at 0.020% for both sides.
• Funding Rates: Funding payments fees occur every eight hours, directly exchanged between longs and shorts, helping keep perpetual contract prices closely anchored to spot markets.
• Deposits: Bybit charges absolutely no deposit fees, with users covering only blockchain network costs when transferring funds into personal accounts.
• Withdrawals: Withdrawals include only blockchain transaction fees, such as 0.0005 BTC for Bitcoin, with no additional Bybit platform charges.
• Settlement Fees: Dated futures contracts incur a fixed 0.05% settlement fee at expiration, offsetting exchange risks when multiple positions close simultaneously.
• VIP Program Discounts: Active traders unlock steep fee reductions, with taker fees falling near 0.015% and makers approaching absolute zero.
• Fee Transparency: Users can monitor live trading fees and predicted funding rates directly inside Bybit’s trading dashboard under detailed contract specifications.

Risk Management Tools on Bybit Futures

Trading futures with leverage exposes traders to amplified volatility, making disciplined risk management essential for both capital preservation and consistent profitability. Bybit integrates a variety of built-in tools that help traders mitigate downside exposure and automate protective strategies in dynamic markets.

Here are the most important risk management tools on Bybit Futures:

• Stop-Loss and Take-Profit Orders: Traders can set SL and TP at order entry, automatically closing positions when predetermined thresholds are reached.
• Trailing Stop Orders: These dynamically adjust stop-loss levels behind favorable price moves, protecting unrealized profits while maintaining exposure to trending markets.
• Isolated vs Cross Margin: Isolated margin limits risk to a single trade, while cross margin applies entire account balance to support open positions.
• Risk Limit Tiers: Maintenance margin requirements increase automatically as position sizes grow, reducing maximum leverage to prevent system-wide exposure during extreme volatility.
• Insurance Fund and ADL: Bybit maintains an insurance pool to absorb losses; as a last resort, Auto-Deleveraging reduces overexposed positions proportionally.
• Price Protections: Liquidations trigger only at mark price, not last trade price, helping prevent unfair closures caused by sudden liquidity wicks.
• Notifications and Alerts: In-app and email alerts warn traders about liquidation risks, margin calls, or price levels breaching critical thresholds.
• Chase Limit Orders: Orders automatically adjust bid or ask prices to follow market movement, reducing missed entries during rapid fluctuations.
• Conditional Orders: Pre-programmed triggers allow entries or exits to execute only when specific conditions are met, adding flexibility to complex strategies.
• Scaled Orders: Large trades can be divided into multiple smaller orders across a defined range, minimizing slippage and improving execution precision.

Bybit Futures Security and Regulations

Bybit adopts a security-first design, combining cold wallet storage, multi-signature protection, and threshold signature schemes to safeguard user assets. The platform also enforces two-factor authentication, anti-phishing codes, and suspicious activity monitoring to protect accounts against unauthorized access.

Proof of Reserves audits are conducted regularly, ensuring Bybit maintains a 1:1 ratio between customer balances and underlying custodial holdings. Transparency reports published on-chain allow users to independently verify balances across trading, funding, and unified margin accounts.

Regulatory compliance requires mandatory KYC verification and strict adherence to anti-money laundering standards across supported jurisdictions. Bybit restricts access for regions such as the US and UK, ignoring the collaborative efforts with international regulators and law enforcement to strengthen oversight.

Pros and Cons of Bybit Futures

Bybit’s futures platform combines deep liquidity, advanced infrastructure, and innovative features, but certain limitations remain important to evaluate carefully. Below is a concise breakdown of the five most relevant pros and cons for traders in 2025.

Benefits of Trading on Bybit Futures

Bybit has differentiated itself in several areas that give traders a genuine edge over competitors, particularly in liquidity, product innovation, and execution quality. Key Bybit Futures pros include:

• Extensive Perpetual Coverage: Nearly 800 perpetual futures pairs are listed, significantly outpacing Binance and OKX in breadth of supported markets.
• Innovative Features: Bybit offers copy trading, grid bots, TradingView integration, and structured products like Smart Leverage for advanced participants.
• Smart Leverage Products: Bybit pioneered structured leverage up to 200x with controlled liquidation, a unique offering not available on rival platforms.
• Integrated Advanced Tools: Built-in order types like scaled orders, chase limit orders, and portfolio margin provide institutional-grade strategy execution capabilities.
• Transparent Proof-of-Reserves: Bybit publishes verifiable Merkle-tree audits, confirming 1:1 backing of customer assets across spot, futures, and margin accounts.

Drawbacks of Using Bybit Futures

Despite strong advantages, Bybit has some drawbacks that could affect accessibility, regulatory certainty, and long-term strategic positioning for active traders. Main Bybit Futures cons include:

• Geographic Restrictions: Services remain unavailable in major markets like the US, UK, and Canada, excluding millions of potential derivatives users.
• Regulatory Flux in Europe: EU users are redirected to Bybit EU, which does not support derivatives, limiting access to core futures products, due to MiCA regulations.
• No Native Fee Token: Unlike Binance BNB or OKX OKB, Bybit lacks an integrated token economy granting permanent trading discounts or staking benefits.
• Liquidity Fragmentation: USDC-margined and USDT-margined contracts split order book depth, reducing efficiency compared to unified liquidity models on rival venues.
• Complex Learning Curve: Advanced products like Smart Leverage and portfolio margin introduce higher operational risk for less experienced retail traders.

Binance Futures vs Competitors

Bybit competes with established centralized exchanges like Binance Futures and OKX while also facing pressure from fast-growing decentralized perpetuals platforms. To highlight the differences, the table below compares Bybit with leading competitors across markets, leverage, fees, and accessibility.

Final Thoughts

Bybit Futures gives traders the arena to chase big bets, hedge serious risks, or refine strategies with precision tools. We like how its mix of liquidity, leverage, and innovative products creates opportunities without sacrificing security or transparency.

For anyone serious about crypto derivatives, Bybit is built to match ambition with execution.