Bybit has launched its USDC options contracts, using USDC - one of the most stable stablecoins - as collateral. This guide will explain everything about Bybit options trading, including how to get started and important considerations.
Key Takeaways
- Understanding Bybit's options trading platform
- Step-by-step guide to starting options trading
- Advantages of trading options on Bybit
- Risk management strategies for options traders
👉 Discover Bybit's advanced trading features
What is Bybit Options Trading?
Cryptocurrency options give holders the right (but not obligation) to buy/sell assets at predetermined prices by specific future dates. Bybit's USDC options are cash-settled European-style contracts that can only be exercised at expiration.
Contract Specifications
| Parameter | Details |
|---|---|
| Contract Type | BTC Call/Put Options |
| Style | European (exercisable only at expiry) |
| Underlying Asset | BTC Index |
| Settlement Coin | USDC |
| Expiry Time | Friday 5 PM UTC weekly |
| Contract Durations | Weekly, bi-weekly, monthly, quarterly |
| Min Order Size | 0.01 BTC |
| Max Order Size | 100 BTC |
| Settlement Method | USDC |
| Liquidation Process | 100% Margin Maintenance Ratio |
| Fees | Trading: 0.03% · Delivery: 0.015% · Liquidation: 0.2% |
Options vs Futures
| Options | Give holders the right (not obligation) to buy/sell assets at strike prices |
| Futures | Obligate contract execution at predetermined prices/dates |
Options generally carry lower risk since losses are limited to premiums paid, while futures potentially have unlimited losses.
Options Trading Basics
How Crypto Options Work
Options contracts match traders through exchanges. Premium costs depend on:
- Time remaining until expiration
- Underlying asset volatility
- Market prices
- Interest rates
Call vs Put Options
Call Options: Profit from price increases
Put Options: Profit from price decreases
Beginners typically start with simple call/put buying strategies before exploring advanced combinations.
Essential Options Terminology
| Term | Definition |
|---|---|
| Premium | Fee paid for option rights |
| Strike Price | Fixed price for exercising option |
| Expiration | Final exercise date |
| ITM | "In-the-money" - favorable position |
| ATM | "At-the-money" - strike = market price |
| OTM | "Out-of-the-money" - unfavorable position |
Advantages of Bybit Options Trading
Stable USDC Margining
- Reduces volatility exposure compared to crypto-collateralized products
Effective Hedging
- Puts protect against downside risk
Expanded Opportunities
- Multiple expiration periods (daily to quarterly)
Competitive Fees
- As low as 0.012% for makers
High Liquidity
- Top-tier order book depth minimizes slippage
Risk Considerations
- Complexity: Requires deeper understanding than spot trading
- Volatility Sensitivity: Small price movements significantly impact option values
- External Factors: Fundamentals can dramatically affect BTC prices/IV
👉 Learn professional risk management techniques
Navigating Bybit's Options Interface
Key Components
- Order History: Track active/closed positions
- Call/Put Chains: View bid/ask spreads
- Strike Prices: Exercise price levels
Greek Indicators:
- Delta: Price sensitivity
- Theta: Time decay
- Gamma: Delta sensitivity
- Vega: Volatility impact
Step-by-Step Trading Guide
Fund USDC Derivatives Account
- Transfer USDC to derivatives wallet
Access Options Trading Page
- Select "USDC Options" under Derivatives
Choose Expiration Date
- Range from weekly to quarterly contracts
Select Call/Put Option
- Analyze Greeks before proceeding
Place Order
- Review details before confirmation
Fee Structure
| Fee Type | Rate |
|---|---|
| Trading | 0.03% |
| Delivery | 0.015% |
| Liquidation | 0.2% |
Frequently Asked Questions
Q: Can I trade options on mobile?
A: Yes - full functionality available in Bybit's app
Q: What's the minimum investment?
A: As low as ~9 USDC
Q: Can you get rich with options?
A: Potentially, but requires understanding volatility/time decay beyond just price direction
Conclusion
Bybit's options trading platform offers sophisticated traders powerful tools for speculation and hedging. Start small, master the Greeks, and always prioritize risk management when trading derivatives.
Ready to begin? 👉 Start trading options on Bybit