Bybit exchange has begun offering its customers a unified margin account. Open to qualified customers, the account will allow them to trade derivatives using an entirely different set of rules. To trade USDT, USDC, and USDC option contracts, they can utilize all of the assets in their account as collateral. Trades will remain open as long as the account’s maintenance margin is sufficient to cover them.
Why the new margin trading account favours traders
With the Bybit unified margin account, the currency balances in USDT, USDC, BTC, and ETH will be converted to USD. The conversion uses the current market rates for the respective assets. As a result, the assets will be employed as a single position margin. As of this moment, the single margin account is capable of supporting the following currencies: USDT, USDC, BTC, and ETH. However, Bybit will add support for more assets after the full release.
With the new single margin account, Bybit traders will be able to simultaneously trade all of the USDT, USDC, and USDC options contracts. In addition, they don’t have to move money around between accounts. OpenAPI and the PC trading site will also be possible for manual upgrades to a unified margin account following its complete release.
In the unified margin account, the profit and loss from all USDT and USDC perpetual contracts holdings will be aggregated and offset against one another. This means that, if the entire risk of the portfolio is kept below a crucial threshold, then the loss sustained by a single position might not be enough to warrant its liquidation.
Auto-borrowing is another another function that comes with this account. The system will automatically borrow an asset if the unified margin account’s available balance goes below 0. This often occurs due to trades and/or market changes. Also, Bybit margin traders would not suffer interest in case the amount borrowed falls within the asset’s interest-free range.