Introduction
To enhance trading efficiency and protect traders from market manipulation, Bybit implements specific order execution limits for derivatives trading. This guide outlines the key trading parameters traders should understand, with detailed parameters for each contract available on the Derivatives Trading Rules page.
1. Minimum Price Variation
The minimum price variation defines the smallest possible price increment/decrement for an asset.
Example:
For BTCUSDT perpetual contracts, the minimum price change is 0.1. If the current price is 68,592.10 USDT, the next possible buy price would be 68,592.20 USDT.
2. Maximum Order Size for Market/Limit Orders
This parameter sets the largest single-order volume for opening positions.
- Limit orders allow larger sizes (e.g., 155 BTC for BTCUSDT).
- Market orders have stricter limits (e.g., 100 BTC for BTCUSDT) to mitigate price impact.
3. Minimum Notional Value/Order Size
To maintain system efficiency, orders must meet:
- Minimum order size: A preset threshold (e.g., 0.001 BTC).
- Minimum notional value: Calculated as
Max(preset size, notional value/order price).
Example:
For BTCUSDT with a 100 USDT notional value and 60,000 USDT LTP: Min order = Max(0.001, 100/60,000) = 0.002 BTC (rounded).
Note:
- Closing orders are exempt from notional value but still adhere to minimum size.
4. Price Limits
Bybit enforces price bands (±5% for BTCUSDT) to prevent manipulation:
- Buy orders exceeding
LTP × (1 + 5%)are adjusted downward. - Sell orders below
LTP × (1 - 5%)are adjusted upward.
Example:
A buy limit order at 66,000 USDT (LTP: 60,000) is auto-corrected to 63,000 USDT.
5. Position Limits
Position limits cap the maximum contracts a user can hold per asset (e.g., 2,762 BTC for BTCUSDT), including sub-accounts. Limits dynamically adjust based on open interest.
👉 Learn about open interest management here.
6. Spread Protection
This feature safeguards traders during volatility by pausing TP/SL orders if the spread exceeds a threshold (e.g., 5%).
Example:
With a -5.4% spread, TP/SL orders won’t trigger until the spread narrows to ≤5%.
FAQ Section
1. Why do market orders have smaller size limits than limit orders?
To reduce slippage and market impact during rapid execution.
2. How is minimum order size calculated?
It’s the higher value between the preset size and notional value divided by the order price.
3. What happens if my limit order exceeds price bands?
The system auto-adjusts it to the nearest valid price.
4. Are closing orders subject to notional value rules?
No, but they must meet minimum size requirements.
5. How does spread protection work?
It pauses TP/SL orders if the mark-to-LTP spread exceeds the threshold.
6. Can position limits change?
Yes, they dynamically update based on open interest percentages.
👉 Explore advanced trading strategies to optimize your derivatives portfolio.
Key Takeaways:
- Adhere to order size limits and price bands to avoid adjustments.
- Use spread protection to shield against volatile markets.
- Monitor position limits to manage risk exposure.
For real-time parameter updates, refer to Bybit’s official documentation.
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