What Are Bybit Options?
Bybit offers cash-settled European-style options that must be exercised upon contract expiration. Options are divided into two categories:
- Call Options: Buyers have the right (but not obligation) to purchase the underlying asset at a predetermined price on the expiration date.
- Put Options: Buyers have the right (but not obligation) to sell the underlying asset at a predetermined price on the expiration date.
Differences Between Options and Futures
Both are derivative tools allowing traders to hedge against market volatility. Key distinctions:
| Feature | Options | Futures |
|---|---|---|
| Obligation | Right, not obligation to buy/sell | Obligation to buy/sell on expiry |
| Flexibility | Buyer chooses whether to exercise | Mandatory execution |
Types of Options on Bybit
Bybit provides multiple expiry contracts, including:
- Intraday, Next-Day, 3-Day
- Weekly, Biweekly, 3-Weekly
- Monthly, Bimonthly, Quarterly
Expiry Contract Rules
New options are listed as follows:
- 3-Day Options: Daily at 08:00 UTC.
- Other Options: Every Thursday at 08:00 UTC.
Refer to the table below for details:
| Expiry Type | Listing Time | Replacement Logic |
|---|---|---|
| Weekly | Thursdays 08:00 UTC | Replaced by 3-Day if same expiry |
| Monthly | Aligned with 3-Weekly | Added if same day as Quarterly |
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Fees and Limits
Fee Structure
- Trading Fee
- Delivery Fee
- Liquidation Fee
Order Limits
| Asset | Min Order | Max Order | Max Position |
|---|---|---|---|
| BTC | 0.01 BTC | 100 BTC | 1,000 BTC |
| ETH | 0.1 ETH | 1,500 ETH | 10,000 ETH |
Key Concepts
Mark Price
The fair value of an option contract, calculated using Black-Scholes model with Implied Volatility (IV). Helps traders gauge deviations between bid/ask and mark prices.
ITM/ATM/OTM
| Option Type | Condition | Status |
|---|---|---|
| Call | Settlement > Strike | ITM |
| Settlement = Strike | ATM | |
| Settlement < Strike | OTM | |
| Put | Settlement < Strike | ITM |
| Settlement = Strike | ATM | |
| Settlement > Strike | OTM |
Margin Modes
Switching Between Modes
Requirements:
- Zero open positions.
- No active orders.
- Minimum 1,000 USDC net equity for Portfolio Margin.
Portfolio Margin Benefits
- Lower IM for hedged positions.
- Higher IM for unidirectional positions.
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Funding Your USDC Account
- Transfer USDC from spot to derivatives account.
- Convert USDT to USDC via instant exchange or spot market.
Risk Alerts
Notifications are triggered for:
- Initial Margin (IM) > 90%.
- IM > 100% (order blocks).
- Maintenance Margin (MM) > 70% (liquidation warnings).
Note: Alerts may lag during extreme volatility.
Managing Positions via Sub-Accounts
Sub-accounts isolate PnL and allow controlled fund transfers between spot and derivatives accounts. Learn more:
FAQs
1. When are new options listed?
- 3-Day: Daily at 08:00 UTC.
- Others: Weekly on Thursdays at 08:00 UTC.
2. What’s the max position size for BTC options?
1,000 BTC per contract (higher for institutional clients).
3. Can I switch margin modes mid-trade?
No. Close all positions and orders first.
4. How is mark price determined?
Via IV-derived Black-Scholes model, reflecting fair value.
5. What happens if two contracts expire simultaneously?
The shorter-duration contract replaces the longer one without adding new expiries.