Customize your collateralized assets with Bybit UTA — first in the industry assets customization feature. Learn how to manage risk while enjoying an enhanced capital efficiency. 

The Bybit Unified Trading Account (UTA) is highly valued by traders and investors for its versatile customization and accessibility. It allows traders to combine trading and cross-collateral margin without switching between accounts. Most investors prefer UTA for its capital efficiency optimization. 

In this guide, we’ll explore the newly added feature of collateral assets customization and learn some tips and tricks to avoid common pitfalls when using this feature.

The Bybit Unified Trading Account (UTA) offers traders access to multi currency trading functions, unlocking the powerful capability to combine and customize their assets and collateralized assets without switching between accounts. 

 modes to trade other assets’ margin contracts, without selling their assets, by using support margin assets as collateral. At the same time, their unrealized profits can be used as a margin to open new positions. The margin under UTA is calculated based on the overall account margin level, rather than a position level. 

Traders utilizing Bybit UTA for Cross Margin and Portfolio Margin trading can greatly benefit, as they don’t need to sell off their assets to trade other margin contracts. This is where collateral assets come into the picture. 

To understand collateral assets, let’s take 

 as an example. The concept of margin is closely related to leverage, which uses borrowed capital to magnify 

 (ROI). With Margin Trading, funds are borrowed from a broker to boost the purchasing power and add leverage for larger capital. Thus, 

leverage is closely tied to margin, as it involves utilizing borrowed money to amplify your ROI. 

Assuming the market is against the trader, it may trigger a Margin Call, whereby traders need to deposit additional funds to meet the margin requirements. These margins are dubbed collateral, as they maintain the longevity of the position. If a trader fails to meet the margin, the resulting shortfall will lead to 

 mode is activated under Bybit UTA, the calculation for the margin requirements will change. Unlike traditional calculation, it considers the overall risk of a portfolio, rather than each position in isolation. By reviewing portfolio-level risk, Bybit can reduce a trader’s margin requirements, increasing their buying power and trading flexibility. In other words, traders can trade larger positions requiring less margin, while maintaining a balanced portfolio of hedged positions with increased leverage. 

Newly Added Feature: Custom Collateral Assets

With the customization of collateral assets, traders enjoy enhanced capital efficiency, even as they effectively manage their liquidation risks without risking the assets they wish to hold.

Benefits of Customizing Collateral Assets

With the continuous upgrade of Bybit UTA, the newly launched collateral assets customization function is the first in the industry to allow users to customize their collateralized assets, offering them a better-managed portfolio of hedged positions. 

Users who preserve their assets can choose not to use a specific asset as collateral. To do this, a user needs to set the desired currency as non-collateral, and the system will show that the asset isn’t eligible for collateralization. When a user sets a currency as non-collateral, the asset will be exempted from UTA liquidation. This also means that positions in Spot and Derivatives won’t affect one another. 

Trader A decides to exclude BTC under a Cross Margin or Portfolio Margin mode, so the uncollateralized assets in the UTA won’t be converted to USD. Thus, different collateral value ratios will only apply to different assets based on the chosen collateralized assets. 

The total margin balance in USD value of the UTA is calculated based on the following formula: 

= Sum (Asset 1 × Corresponding USD Index Price × Corresponding Collateral Value Ratio + Asset 2 × Corresponding USD Index Price × Corresponding Collateral Value Ratio + … + Asset N × Corresponding USD Index Price × Corresponding Collateral Value Ratio)

If there is no USDT Perpetual Index Price for a certain coin, the Last Traded Price from the Bybit Spot market will be referenced. For example, the USD index price for ETH will be calculated as 

Note, however, the account’s Maintenance Margin (MM) rate will still trigger the liquidation. 

So whenever the MM rate reaches 100%, and Trader A still holds multiple positions, but one or some of the positions have losses may cause the account Maintenance Margin (MM) rate to hit 100%, thus, liquidation will be triggered. 

Start upgrading your account by following these steps:

1. Visit Bybit Spot, Derivatives, or Options trading page or head to your Spot, Derivatives or USDC Derivatives Account under the Assets page

2. Click "Upgrade to Unified Trading Account"

3. Complete the Bybit UTA tutorial in a pop-up and pass all of the short quizzes to get started.

Limitations of Customized Collateral Assets

Users can isolate the liquidation risk of some currencies while using a unified trading account. However, there are several limitations.

When an account is in liquidation, collateral assets customization cannot be adjusted. This is because Spot or Derivatives positions may have already generated an 

. Depending on the MM rate, the liquidation process may have already been initiated. Thus, changing the collateral assets may affect liquidation risks. Traders should confirm their customized collateral assets before confirming their Spot or Derivatives market orders.

If the Initial Margin (IM) rate in a trader’s UTA reaches

 or exceeds 80%, the customization of collateralized assets won’t be adjusted. For example, if the IMR was 70% before, and while adjusting certain collateral the system tries to calculate that the IM may reach or exceed 80%, this adjustment won’t be successful. That said, if the traders’s wallet balance is below 0, the collateral assets can no longer be customized. 

As much as we would love to provide this function to all traders, it’s currently only available for traders in categories from VIP 0 to PRO. Bybit is working to upgrade this feature in the hopes of making it available to Institutional Loan users in the future. 

Common Mistakes to Avoid When Customizing Collateral Assets

Customizing your collateral assets for Derivatives or Spot Trading is important for risk management and enhanced capital efficiency. However, traders may under- or overestimate the power of doing so. 

 should avoid when collateralizing assets. 

Relying heavily on a single type of collateral asset can expose a trader or institution to significant risks. Diversification helps spread risk across different assets, reducing the impact of an asset's price or value swing in a volatile trading environment. 

For example, using a highly volatile asset as collateral may increase the risk of a margin call. If the value of a collateralized asset drops significantly, you might be required to post additional collateral to cover the margin call.

 are the percentage reduction applied to collateral value to account for potential market fluctuations. Failing to apply appropriate haircuts can lead to underestimating the risk associated with collateral assets, potentially exposing a trader to greater loss.

Collateral assets should be continuously monitored to ensure they meet the necessary requirements. Failing to keep track of the value and quality of your collateral can lead to “surprises” and potentially costly margin calls.

Accepting low-quality or low-rated assets as collateral can lead to higher risk exposure. Proper due diligence should be performed to assess the quality and creditworthiness of collateral assets.

Market conditions change over time, and the values of various assets can fluctuate. Failing to rebalance your collateral portfolio periodically can lead to an imbalance in your risk exposure.

In summary, customizing collateral assets for derivatives or spot trading requires careful consideration and risk management. Avoiding these common mistakes can help ensure a more secure and stable trading environment. 

The Bybit UTA custom collateral assets function allows traders to easily customize their collateralized assets for a better-managed portfolio of hedged positions. Users can also strategically utilize their gains and losses generated from different trading markets to offset each other, based on their desired trading strategies and the assets chosen. 

Although the feature is not yet available for Institutional Loan traders, Bybit is actively upgrading the platform with better features to fit the demands of all traders. All in all, trading with collateral assets involves higher risks. Please consult a financial advisor and do your due diligence before trading. 

Intermediate

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Mastering Bybit UTA: How to Customize Your Collateralized Assets

Bybit UTA is excellent in streamlining the users' trading experience across asset types within a single account. Here are the tips for managing your risk exposure effectively.  

As a crypto trader, you've probably become accustomed to juggling multiple assets across different accounts, even within the same exchange. Multiple accounts require regular asset transfers between them and keeping track of margin collateral and overall portfolio performance separately. This setup doesn't allow margining to net out, resulting in less efficient risk management.

Even though multiple trading accounts may be the industry standard, Bybit now offers the Unified Trading Account (UTA), a game-changer for traders looking to streamline portfolio management. With the innovative UTA, you can easily trade and manage multiple assets across the crypto ecosystem from a single portfolio without the typical complexities and risks associated with regular trading accounts.

In this article, you'll learn how to use Bybit’s Unified Trading Account for a simplified experience, effective risk management and optimal trading execution.

 (UTA) is a versatile all-in-one account mode that offers access to multi-currency trading and core trading products with just one click, including Spot, Derivatives, USDC and USDT Perpetual, 

It provides traders with a powerful option to combine trading and cross-collateral margining under a single account. You can access up to five trading products, risk management and portfolio management without switching between accounts.

The UTA is an upgrade optimized for a seamless trading experience for all traders, from retail spot traders to institutional traders who prefer consolidated accounts. The account's functionalities are simple to use, making it suitable for traders of all levels. Additionally, as long as you have supported collateral assets in the UTA and your USD value is sufficient, you can open positions even if you don't have a balance in that particular coin.

Overall, the UTA boasts an innovative product feature that simplifies trading, risk management and account finances, providing traders with a seamless trading experience and enhancing their trading strategies. 

Benefits of Using UTA for Risk Management

Bybit UTA is designed to enhance risk management capabilities for traders. The following are some key benefits of using the UTA for risk management.

Better View of the Consolidated Portfolio 

Bybit UTA provides a consolidated view of all positions across multiple trading pairs and products. Traders can view their holdings in various cryptocurrencies, such as BTC, ETH and USDT, and also view their exposure to different trading pairs, such as BTC/USD and ETH/USDT. With a better view of their consolidated portfolio, traders can quickly identify potential risks and take appropriate actions to manage their positions.

The consolidated portfolio view feeds traders important information, such as their total account balance, margin requirements and unrealized P&L across all their positions. Traders can also view their position details, such as entry price, size and liquidation price, as well as set stop-loss and take-profit orders. For example, a trader who has significant exposure to a particular cryptocurrency may consider reducing their position size or setting stop-loss orders to limit their downside risk.

Effective Deployment of Risk Management Tools

Bybit UTA offers a range of risk management tools, such as stop-loss and take-profit orders, auto-borrowing and cross-asset collateralization, and customizable leverage settings. These tools allow traders to mitigate potential losses and protect their profits, while also optimizing their trading strategies based on their risk tolerance and objectives.

The margin calculation is performed at the account level instead of the individual position level, creating a more robust risk management framework. This is because any unrealized trading profits and losses can balance out, preventing risk from being amplified. A loss on one single position doesn’t have to trigger a liquidation. Rather, margin requirements factor in the overall risk of the unified trading account. Additionally, the Bybit UTA implements risk management strategies across a diversified portfolio, which can further enhance a trader's risk profile.

Bybit UTA supports the trading of various cryptocurrencies, including Bitcoin, Ethereum and other altcoins, as well as perpetual contracts and other derivatives. The comprehensive range of investment products allows traders to diversify their portfolios and manage risks more effectively by allocating funds across multiple assets and products.

How to Use UTA to Improve Margin Efficiency

Since Bybit UTA is a multi-asset account that allows users to manage multiple crypto assets across the crypto ecosystem in one portfolio, it can help traders improve their margin efficiency, which in turn can help maximize returns while minimizing the risk of losses.

Supported Products: Spot Trading, Margin Trading, 

USDT Perpetual, USDC Perpetual, USDC Futures and USDC Options

An important feature of Bybit UTA is its Portfolio Margin functionality, designed for professional derivatives traders. Unlike traditional margin accounts that calculate margin requirements for each position separately, Portfolio Marginestimates margin requirements for the entire account, allowing high–net-worth customers to manage their risks more proactively. This means the ability to use margin across multiple positions, potentiallyoptimizing returns. 

The total USD value of the UTA is based on the following calculation: 

Total Asset Value (in USD) = Number of Assets × USD Index Price × Conversion Ratio

The UTA uses the total asset value and takes into account the overall risk of the entire account, which results in a more accurate and efficient allocation of margin. It also lets you utilize both the simple account and multi-currency margin modes, providing additional options for managing margin requirements.

Supported Products: Spot Trading, Margin Trading,

USDT Perpetual, USDC Perpetual, USDC Futures and USDC Options

Position Modes: One-way Mode and Hedge Mode (only for USDT Perpetual)

 (the default mode) also allows margin balances to be shared across multiple positions, with over 70 crypto assets as collateral. By opening positions across different trading products, you can increase leverage from hedging and enhance capital efficiency. Should you lose a position, you’ll also reduce the likelihood of a margin call and forced liquidation. 

Cross Margin is an ideal risk management tool for long-term trading strategies in the volatile crypto market. Both spot and derivatives traders can use Cross Margin mode.

Supported Products: Spot Trading, USDT Perpetual, USDC Perpetual and USDC Futures

Spot and derivatives traders also have access to Isolated Margin mode. Although Isolated Margin is only assigned to a single position or an independent trading pair, the benefit is that if you experience a margin call or forced liquidation in the position it won’t affect your other positions. You can even set a different level of leverage, depending on whether you hold a long or short position. 

Hence, Isolated Margin is helpful for more conservative traders looking for flexibility in a single position while limiting their losses. Please note that Isolated Margin mode does not support spot margin trading.

Bybit UTA allows traders to improve margin efficiency by optimizing borrowing and repayment functionality using the Portfolio Margin Mode. If the equity of any assets drops below zero because of trades and/or market fluctuations, the system will auto-borrow assets, which may be subject to interest. Manual borrowing is not available.

The following conditions may trigger auto-borrowing:

1. Your wallet balance is reduced by transactions

2. Perpetual contracts record unrealized losses

3. Decrease in value of USDC Options positions

4. When the Spot Margin trading function is enabled, assets are borrowed during margin trading

Another benefit of the UTA is that it offers a broader selection of collateral and borrowable assets, such as USDT, USDC, BTC and ETH. This allows users to access more than 60 assets as collateral, thus benefiting from more flexibility in managing their margin requirements.

Understanding the Liquidation Process With UTA

The liquidation process with Bybit UTA is triggered when the account's maintenance margin rates reach 100%. To understand how the liquidation process works, it’s important to understand the concepts of initial margin rate and maintenance margin rate. 

The initial margin is the amount of collateral required to open a position, while the maintenance margin is the minimum amount of collateral required to keep a position open. The account's initial margin rate and maintenance margin rate are calculated based on the position's initial margin and maintenance margin, respectively.

If the account's initial margin rate reaches 100%, all active orders requiring additional margin will be canceled. This means that the account will only be able to open new positions or increase the size of existing positions once asset value is increased.

If the maintenance margin rate is above 80%, all orders for spot margin that occupy costs will be canceled, and assets will be sold to settle liabilities.

Suppose a user account's maintenance margin rate reaches 100%. In that case, liquidation is triggered, which means the system will automatically sell off some or all of the position to cover the losses and bring the margin back to a safe level. The system first reduces the risk limit of all perpetual trading positions, and then closes positions according to the liquidity order of the trading pairs.

As long as the maintenance margin reduces to below 100%, liquidation can end. It’s important to note that the liquidation price may differ from the bankruptcy price, which is the price at which an entire position is completely liquidated.

If the maintenance margin rate suddenly exceeds the threshold, the liquidation system will take over the USDC Perpetual and USDC Option positions in the account.

Using Bybit's Unified Trading Account (UTA) can be an effective way to manage your risks when trading cryptocurrency. By having access to a variety of risk management tools, such as cross-collateralization and net portfolio margining, you can better protect your capital and potentially increase your profits. 

It's important to take the time to learn how to use these tools effectively and to develop a solid trading plan that takes your risk tolerance and investment goals into account. With the right approach and tools, you can seamlessly and confidently trade multiple crypto assets.

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How to Use the Bybit Unified Trading Account for Effective Risk Management

Learn the differences between Bybit Funding, Derivatives and Unified Trading Account for better capital efficiency. 

Beginner

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Bybit Funding vs. Derivatives vs. Unified Trading Account: Multi-Asset Trading Under One Account

Wondering whether to upgrade to the Bybit Unified Trading Account? Check out this article to find out which kind of trader it's best suited for.

As a leading cryptocurrency exchange, Bybit has progressively improved and expanded its products and services to meet the evolving needs of its users. Some of its many products include Spot, Derivatives and Options. Until recently, Bybit users have often held multiple accounts to take advantage of all of the exchange’s features. However, managing multiple accounts can be both limiting and complicated for many users. To improve the user experience, the Bybit Unified Trading Account has recently been introduced.

What Is the Bybit Unified Trading Account?

The Bybit Unified Trading Account offers exciting features to 

 of cryptocurrency traders. For example, because all of the accounts are managed collectively, users can borrow cryptocurrencies based on their total portfolio value rather than on the value of a single account. The Bybit Unified Trading Account supports more than 60 unique assets that can be used as collateral for borrowing purposes. Trades with any cryptocurrencies can be completed, provided sufficient funds are available. Additional features include auto-borrower, cross-asset collateral, netted profit and loss, and margining using unrealized profits.

Who Should Use the Bybit Unified Trading Account?

With the Bybit Unified Trading Account, users can access five trading products with only one click. These products include 

. This account is available to all users through the website, the API or the app. More than that, its ease of use and its functionality make it beneficial to all traders.

Many Bybit users have multiple accounts, and they regularly move their crypto assets between their accounts to access different features. With a Bybit Unified Trading Account, all assets are managed together, and the need to move crypto assets around is eliminated. In addition to simplifying activities, a Bybit Unified Trading Account makes it easier for traders to monitor their total assets, and enhances leveraging capabilities.

Let’s take a look at the example of a user who wants to trade across multiple product types. Before upgrading to the Bybit Unified Trading Account, they would take the following steps in order to trade both Spot and Derivatives:

On the other hand, if the user were to upgrade to the Bybit Unified Trading Account, their task would be reduced to the following five steps:

Upgrading to the Bybit Unified Trading Account allows traders to use the funds from one single account for all types of products on Bybit, minimizing the hassle required to transfer funds from one account to another in order to carry out a trade. 

A Bybit Unified Trading Account supports both USDT and USDC Perpetuals. Rather than managing separate accounts individually for these products, users can benefit from using a single account. By viewing and completing all perpetual contracts in one location, users can moderate risk and more easily monitor their assets. Furthermore, the Bybit Unified Trading Account makes it possible for the profit and loss of perpetual contracts to be offset by each other. This enables you to use your unrealized profits to open new positions. 

Let’s take a scenario in which you’re a user who holds multiple USDT permanent positionings at the same time:

Before the upgrade to a Bybit Unified Trading Account, the overall situation in the Contract Account is a loss of $1,800 (−$1,200 − $600 = −$1,800). This is due to the fact that the floating profits of positioning 1 and 2 can’t be used to open a new positioning. 

However, once you upgrade to the Bybit Unified Trading Account, your overall profit will be $1,200 (or $1,000 + $2,000 − $1,200 − $600 = $1,200). With this $1,200, you’ll be able to open a new positioning.

Hedging allows traders to mitigate risks associated with their portfolio positions. A Bybit Unified Trading Account presents enhanced risk management to users. This is done through the use of the Portfolio Margin mode, which ultimately improves the utilization rate of funds for users.

Consider a situation where a user holds multiple BTC stock options and uses BTCUSDT hedging. Before upgrading to the Bybit Unified Trading Account, the user would go through with the following steps:

In this case, each stock option and permanent positioning will have an independently calculated margin in which the overall margin is higher.

If the user were to upgrade their account, they would simply need to open the Portfolio Margin mode in their Bybit Unified Trading Account to trade both BTC stock options and use BTCUSDT perpetual hedging. The BTC positioning under the Risk Unit will be calculated based on the Portfolio Margin mode, thereby reducing the margin occupancy.

With a Bybit Unified Trading Account, users can take advantage of up to 5x leverage. This enhanced leverage allows users to potentially increase profits from their trading activities. In addition, users can directly spot leverage to long BTC and short BTCUSDT Perpetuals.

To better understand how the Bybit Unified Trading Account benefits Spot Futures portfolio arbitrage traders, let’s explore an example using Spot leverage to trade more BTC Spot, while shorting BTCUSDT Perpetual Contracts and charging funding costs.

Before upgrading, the user will have to pay attention to the loan-to-value (LTV) of their Spot Account when using Spot leverage to trade more BTC. This is to ensure that their account is not in danger of liquidation. At the same time, they would have to take note of the price changes of forced liquidation for the BTCUSDT Perpetual Contract to prevent being liquidated. 

The hassle of doing both of these tasks at the same time could be overwhelming for traders. As such, upgrading to the Bybit Unified Trading Account will allow them to simply pay attention to the maintenance margin occupancy rate of the account, while they directly Spot leverage to long BTC Spot and short BTCUSDT Perpetual Contracts.

The Bybit Unified Trading Account is open to API traders, thanks to its 

. API trading supports faster execution of orders, and may offer greater control of trading activities. API traders can continue to enjoy these advantages while accessing Bybit’s five core products and simplifying account management.

In a scenario where a user who has yet to upgrade to the Bybit Unified Trading Account uses OpenAPI to trade Spot and Derivatives, they would have to access the Spot V3 OpenAPI to do Spot trading, and the Contract V3 OpenAPI to do Futures trading. 

However, if they chose to upgrade their account, they would be able to directly access the latest V5 OpenAPI. Using a predetermined set of rules and a set interface for placing, changing and canceling orders, the V5 OpenAPI supports transactions of all Bybit products in just one click.

Why Should You Use the Bybit Unified Trading Account?

A Bybit Unified Trading Account opens up a world of possibilities. For example, a Derivatives Account and a USDC Derivatives Account only support a specific crypto asset for collateral. On the other hand, your Bybit Unified Trading Account works with more than 60 types of assets. In addition, cross-margin trading across numerous products is available. 

With your new account, you can also take advantage of increased leverage for Spot positions, which can enhance the profitability of your activities. Risk management is also improved, because liquidation is triggered through the Portfolio Margin mode. Plus, account management is simplified through the Bybit Unified Trading Account. Account holders also have access to increasingly competitive interest rates, based on their VIP level, as an additional benefit.

Bybit offers a solid selection of products and features to meet the needs and expectations of today’s traders. With a Bybit Unified Trading Account, you can take advantage of these products and features with a single account, rather than having to manage multiple accounts simultaneously. Open to all users, this account can dramatically elevate your experience on Bybit going forward. Upgrade to the Bybit Unified Trading Account to get started today!

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Bybit Unified Trading Account: Who Is It Best Suited For?

The Bybit Unified Trading Account allows you to trade multi-currency, Spot, Spot Margin, USDT and USDC Perpetuals, and USDC Options in a single account. Read on to find out all about its benefits. 

Cryptocurrency is a revolutionary asset class that keeps evolving, and exchanges like Bybit continuously seek to provide users with better and more robust solutions. Many users typically manage multiple accounts on a trading platform. As Bybit's product line expands into 

, you might wish to unify your accounts for better trade optimization. With the Bybit Unified Trading Account, you will now be able to manage all your assets and funds in one account.

Bybit's Unified Trading Account is open for all traders and users alike to access better risk management, higher capital efficiency, 

, and enhanced flexibility. Let's take a look at how the Unified Trading Account works.

The Bybit Unified Trading Account enables easy and efficient trading by allowing users to consolidate assets and trade multi-currency, Spot, 

All assets can be consolidated without transferring assets between accounts for a comprehensive range of trading products and margins using their U.S. dollar-pegged value. This means that traders can now automatically borrow different cryptocurrencies if the overall portfolio value is sufficient. For instance, even if you don't have ETH in the account, you can still settle trades in ETH – ETH liability is automatically generated, and interest is charged, if applicable.

The Unified Trading Account calculates overall risk and assets on a USD basis at an account level. Given distinct liquidity profiles, assets will be converted at different rates into USD. The USD value of your Unified Trading Account is based on the following calculation: 

Your profits and losses are netted within your account and margining is determined across assets. That way, losses on a single position will only trigger liquidation if the account maintenance margin has not been met.

Advantages of Bybit Unified Trading Account

The Bybit Unified Trading Account offers several unique advantages as highlighted below:

Bybit offers a range of advanced trading products, including Spot, Perpetual Contracts, and USDC Options, often with generous 

. The Unified Trading Account allows users to manage multiple assets across the crypto ecosystem in one portfolio. 

Users can access more than 60 assets as collateral, such as USDT, USDC, BTC and ETH. These assets serve as margin collateral calculated on a total account level rather than for each position. The system automatically calculates the available margin based on the prevailing conversion rate.

Traders can transfer all accepted cryptocurrencies into the Bybit Unified Trading Account and trade any currency as long as the account has sufficient funds overall. 

The account triggers auto-borrowing if the asset 

 drops below zero due to market movements. The borrowed amount is interest-free within a specified range. For example, assume that Trader A has BTC in his account, but no USDT. When Trader A opens a USDT Perpetual Contract and generates a trading fee of 10 USDT, the system will auto-borrow 10 USDT and count it as Trader A's liability.

The Bybit Unified Trading Account promotes the efficient use of assets in the following ways:

Risk management is particularly robust because the margin is calculated at the account level rather than on the position. Trading profits and losses will offset one another, and you can avoid risk amplification because single losses don't necessarily trigger liquidation. Further, you can apply risk management strategies across a diversified portfolio, thereby improving your risk profile.

Who Should Use Bybit Unified Trading Account?

The Bybit Unified Trading Account is ideal for all traders alike as it provides convenient one-click access all across our five core trading products. Moreover, the account's functionalities are simple to use and relatively suitable for all traders, from retail spot traders to institutional traders who prefer a consolidated account.

. You can access the account via the Bybit app, the Bybit website, or API.  

The Bybit Unified Trading Account comes with the benefits of a 

, offering users access to more trading assets in one account and a simplified method to trade Spot, Derivatives, and manage their portfolios on Bybit. 

If you’re looking for cross-asset trading and margining of Spot leverage, Perpetual Contracts, and USDC Options, The Bybit Unified Trading Account will bring to you all of these functions with simplicity of use. What’s more, you will also get to enjoy higher capital efficiency and full portfolio visibility. So, to enjoy the flexibility and convenience of owning a single account, make sure to upgrade to a consolidated Unified Trading Account today! 

What Is Bybit Unified Trading Account and How Does It Work?

Portfolio margin benefits traders to trade larger positions with less margin required. But is it sustainable and truly beneficial for traders? Learn more. 

Investing in financial markets can be a high-stakes game, with a thin line between success and failure. Traders need to be strategic, agile and smart in managing their positions, especially when trading on margin. That's where Portfolio Margin comes in. 

By taking a holistic approach to margin requirements, traders can potentially reduce their margin requirements, increase their buying power, reduce their costs and add more flexibility to their trading strategies. 

In this article, we'll explore how Portfolio Margin can benefit crypto traders and help them stay ahead.

Sometimes, traders need to borrow funds from their brokers to trade securities or crypto assets, a practice known as trading on margin or 

. “Margin” also refers to the difference between the value of an investment and the amount borrowed. Margin requirements are the minimum amount of funds that traders must deposit with their broker as collateral to open a margin account and trade on margin.

The concept of margin is closely related to 

, which is the use of borrowed capital to magnify your return on investment (ROI). When margin trading, you use funds borrowed from your broker to boost your purchasing power and add leverage.

However, margin trading also comes with additional risks. If the market goes against you, it may trigger a margin call, and you’ll need to deposit additional funds to meet the margin requirements. If you fail to make up the shortfall in margin, the broker can liquidate your position in order to cover the outstanding debt.

Margin requirements can vary depending on the type of asset traded, market conditions and the broker's policies. Understanding margin requirements and the scenarios that may trigger a margin call is essential for successful margin trading.

What Does Portfolio Margin Mean for Traders?

Portfolio margin is a method of calculating margin requirements. It considers the overall risk of a portfolio rather than each position in isolation. By reviewing portfolio-level risk, brokers or exchanges can potentially reduce their margin requirements, which translates into increased buying power and trading flexibility.

Portfolio margin benefits traders by allowing them to trade larger positions with less margin required. This can increase buying power and capital efficiency, potentially opening the door to more trading opportunities.

 margin rules that govern the amount of credit broker-dealers can offer for the purchase of traditional securities. Under Reg T, each position is evaluated separately, with the margin required for each position based on its individual risk. This creates a situation that can lead to higher margin requirements for traders with diversified portfolios, even if their overall portfolio risk is relatively low.

With Portfolio Margin, however, the overall risk of a trader's portfolio is taken into account when calculating margin requirements. The lender nets off the unrealized profits on long and short positions held in different assets against each other. Typically, a diversified portfolio produces lower margin requirements because the net risk of the portfolio is lower than the sum of risk exposures on individual positions.

Portfolio margin is often available to traders who meet specific criteria, such as having a minimum account balance and meeting certain experience requirements. Traders eligible for Portfolio Margin should carefully consider whether it suits their trading style and risk tolerance. One needs to be prepared to manage the potential risks associated with increased leverage.

How Does Bybit UTA Portfolio Margin Mode Help Traders to Maintain a Balanced Portfolio?

 (Unified Trading Account) Portfolio Margin mode is a risk-based margin policy designed to help reduce margin requirements on a balanced portfolio. It offers enhanced capital efficiency and increased leverage. 

When active, Portfolio Margin mode uses financial models to derive the overall risk of your USDC derivatives portfolio by offsetting long and short positions in perpetual and options contracts. It evaluates the range, changes in the mark price, and market volatility of the underlying asset. 

Here’s how Bybit UTA Portfolio Margin mode can help traders maintain a balanced portfolio:

Once the Bybit UTA Portfolio Margin mode is enabled, eligible Bybit users can unlock greater capital efficiency and potentially generate higher returns. 

Portfolio Margin calculates margin requirements based on the overall risk of an investor's entire portfolio, rather than individual positions. This approach offers a few benefits.

For example, suppose a trader has a diversified portfolio of stocks, options and futures contracts. A Portfolio Margin account can allow them to hold their positions with fewer margin requirements than a standard margin account, resulting in lower costs to maintain their positions. In contrast, a standard margin account may require higher margin requirements, making it more expensive to hold the same positions. 

Remember that Portfolio Margining involves unique and significant risks, including increased leverage, which increases the potential loss. There may also be stricter time frames for meeting deficiencies in margin, which raises the risk of involuntary liquidation.

Who Qualifies for Portfolio Margin on Bybit?

Bybit is a leading crypto exchange that offers its Portfolio Margin mode feature to eligible users to help them unlock greater capital efficiency and earn higher returns. Anyone with a Bybit account can qualify for Portfolio Margin. 

To get started with Portfolio Margin mode, users must first meet the following criteria:

Note that Bybit has two margin systems: Isolated margin and cross margin. By default, cross margin is the mode used on Bybit, which uses a trader's available balance to prevent liquidation. However, if the equity of a trading pair is lower than the maintenance margin, the position will be liquidated.

Things to Note When Using Portfolio Margin

Traders using Portfolio Margin should be aware of the risks involved, as well as the potential benefits. They should also monitor their positions carefully, and be prepared to meet margin calls if necessary. 

Overall, Portfolio Margin can be valuable for traders looking to increase their buying power, exercise more flexibility in their trading strategies and potentially save on margin costs. However, traders should also be aware of the risks involved and closely monitor their positions. Be sure to maintain a solid understanding of Portfolio Margin requirements and a clear risk-management plan.

Portfolio Margin may not be suitable for all accounts or trading styles. For example, traders who have a significant amount of unhedged risk, such as a highly concentrated single asset position, may not benefit as much from Portfolio Margin. However, Portfolio Margining offers better flexibility for adding more positions. 

As with any trading strategy, do your own research, seek advice from experienced traders or financial professionals, and carefully consider your risk tolerance and financial goals before using Portfolio Margin.

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