Written by community member The Nervos Doc
Bybit.com is one of the biggest and reputable cryptocurrency exchanges in the world, creating a safe enviroment for traders. In order to understand how Bybit’s CKBUSDT perpetual contracts work and be able to trade yourself, you will need to understand some basic concepts beforehand.
Futures: a “futures” contract is a trading tool that lets you speculate on the value of the underlying asset (CKB) on a PREDETERMINED period of time. This way, you can open a short/long position on a fixed open and closing date (settlement date), eliminating volatility over that period of time.Leverage: Leverage is basically a LOAN. If you invest 100 USDT of YOUR money, you can leverage 1:10 on a cryptocurrency pair (like CKBUSDT). This means that the exchange will “give” you 900 USDT, and buy FOR you 1000 USDT worth of CKB. If the price of CKB goes up 1% from the moment you made the leveraged trade, your profit will be 10% from your actual investment, BUT the same applies if the price of CKB goes 1% the other way, placing you at a 10% loss. Of course, because nothing in life is free, you will also pay a 6–8% tax on the loaned sum to the loaner (the exchange in our case).Perpetual contracts: Perpetual contracts are a version of “futures”. They DO NOT have a settlement date (hence the “perpetual” in the name). They are a powerful trading tool that lets you speculate on the price of CKB WITHOUT holding the actual CKB. Because they do not have a settlement date, they can be held for an indefinite amount of time, and be traded at any given point. The fact that there is no settlement date creates a problem that would not exist on a normal futures contract: the price of the “perpetual contract” CKB wouldn’t be close to the real value (spot) CKB. But there is a very smart solution. In order to keep the “perpetual contract” CKB value close to the real value of CKB at any given point in time in the future, a FUNDING RATE is needed.Funding rate: Funding rate is a periodical payment (every 8 hours on Bybit) that brings the perpetual contract CKB value closer to the REAL value (index price) of CKB, the 2 prices converging on a regular basis, mimicking the convergence happening in the “future contracts”. These periodic payments are made either from LONG traders to SHORT traders (if the perpetual contract’s value has a higher value than the index price) or from SHORT traders to LONG traders (when the spot price is higher than the perpetual contract’s value).
To start trading CKB/USDT on Bybit.com’s CKB/USDT perpetual contract you need an account. Use any search engine, and type: “bybit.com”. You should see something like this:
Bybit home page
On the upper right corner, press “Sign Up” in order to create an account:
As you can see, all you need is your email/phone number and a strong password.
Note: You can always enhance your online security by using password managers, software 2FA or even hardware 2FA.
After you accept TOS and press the “Continue” button you will receive an email from Bybit containing a 6 digit number. You will have to introduce that number in the box that will appear on your screen.
Note: NEVER share this number with anyone!
Now you should be Logged In, and be brought back to the Bybit default page. From here, move your cursor over the “Derivatives” tab in the upper part of the website. A new menu will pop-up, with the first option being the perpetual contracts that use USDT as collateral, like in the following picture:
You can either scroll in the right menu until you find CKB/USDT pair, or you can directly SEARCH “CKBUSDT” in the search section, here:
After you press on the pair, you should be redirected to the bybit.com trading platform:
The trading platform have 3 main parts: the left section, consisting of the chart (in this case showing 30 minutes candles, and under them, the traded volume);
the center section is made of the order book and the most recent trades:
And finally, in the right section of the trading platform you have the tools needed to trade:
In order to trade CKB/USDT, you will need funds. To add funds (USDT) to your Bybit wallet, simply go to upper right corner “Assets”, and press on the second option “Derivatives Account” like in the picture below.
After this, you should press Deposit on the USDT tab.
A new window will appear. You can choose here on what blockchain you want the USDT to be transferred, with options ranging from ETH, to BNB and TRX. I personally chose TRX in this case.
NOTE: Make sure the deposits are auto channeled to the derivatives account.
After the USDT funding of your Derivatives account, you can consider yourself good to start trading. Back to CKB/USDT perpetual contract!
Bybit.com’s trading platform lets you choose your Margin Mode: “Cross” or “Isolated”. “Cross” means that ALL the funds located in your derivatives wallet will be used to meet maintenance margin requirements and prevent liquidation, while “Isolated” gives you the possibility to choose a specific quantity of USDT to be used in that scenario, limiting your losses.
The CKB/USDT pair comes with a minimum leverage of 1x and a maximum leverage of 12.5x for both SHORT and LONG positions.
Now, you can use your USDT to open a perpetual contract on the CKB/USDT pair. How can you do that? On the right side you can see the trade menu, like in the picture below:
Limit order will create an order to BUY/SELL at a given price.
Market order will create an order to BUY/SELL at the price of the market, but the execution of the trade will be influenced by SELLERS and BUYERS at that time.
Conditional order will create an order that will be fulfilled when the trigger price will be reached.
You can also use the STOP LOSS and TAKE PROFIT functions with both LONG and SHORT positions.
Here is an example of a long position. I want to buy 150 CKB at the price of 0.014 USDT. I want to take my profits at 0.015 USDT, and if I am mistaken, I placed a stop loss at
0.013 USDT. This is the confirmation of my order:
On the bottom part of the trading platform you can see all your positions, trades, order history, etc. Bybit also gives you the possibility to open BOTH shorts and longs on perpetual contracts.
By now, you should have acquired the theoretical aspect of the CKB/USDT perpetual contract on Bybit.com. Remember that you do NOT own any of the CKB in this type of contract, and that leverage can be a very powerful tool, but at the same time can bring ruin if used recklessly.
Have fun, make money, invest carefully and ONLY what you afford to lose!
Before you start using your own money with perpetual contract, you can train your trading skills on https://testnet.bybit.com/en-US/
Peace out!
~NervosDoc (DrMODOC)