Bybit, the world’s second-largest cryptocurrency exchange by trading volume, is proud to announce the launch of Spread Trading. This new trading functionality streamlines the previously more manual technical crypto trading environment enabling crypto traders to access markets faster and at lower cost now available via Bybit’s intuitive platform.
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As uncertainty becomes a constant theme in financial markets, and ongoing price fluctuations test traders’ risk appetite, Bybit’s Spread Trading offers a timely solution for investors seeking to capitalize on price differences between corresponding crypto assets, without the previously heavier risk management and markets access complexities traditionally associated with such trading crypto strategies.
Spread trading comes with a wide range of benefits on Bybit:
- Guaranteed Spread Execution: The entry spread exactly matches the order price set by the user, eliminating slippage concerns.
- Precise Execution: Both positions are filled simultaneously or not at all, removing the “leg risk” of incomplete trades.
- Risk Hedging: Offsetting market swings by taking opposite positions in correlated assets.
- Strategic Flexibility: Diversifying strategies including Funding Rate Arbitrage, Futures Spread, Carry Trade, or Perpetual Basis trading.
- Lower Costs: The feature stands to save traders 50% of the fees compared to placing separate orders manually.
What is Spread Trading
Spread trading is a strategy where traders simultaneously buy one crypto asset while selling another related one, allowing them to profit from the price difference (spread) between them rather than from overall market direction. Bybit simplifies the process by combining both trades into a single transaction and precise entry points, eliminating timing risks and execution issues.
The strategy works by pairing related instruments, such as Spot and Perpetual contracts, or two different Expiry contracts, in equal but opposite positions, creating a delta-neutral approach that protects traders from broad market volatility.
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Bybit’s Spread Trading feature currently supports four trading combinations: Expiry & Expiry contracts, Expiry & Perpetual contracts, Expiry & Spot markets, and Perpetual & Spot markets. The service is available for BTC, ETH, and SOL with plans to expand to additional digital assets.
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Bybit users may now power up their trades and ride the highs and lows of the crypto markets with ease.
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Source – prnewswire
