When one of the most innovative centralized exchanges in the crypto-sphere embarks on a new trading experience, it is well worth the detour. Indeed, Bybit unveils this month its unified trading account (CTU) from where you can make all your transactions on the spot and derivatives markets. Still known as UTA (Unified Trading Account), this account fulfills the promise of more optimized management of your trading assets that you find within a single account. Let’s explore together the possibilities offered by this solution.
Versatility at the rendezvous
THE CTU is the dream come true of many crypto investors. So, they imagined it and Bybit made it.
It is a type of versatile account that allows traders to hold all their assets there and above all to carry out all their trading activities without switching from one account to another.
This means that the customization of trading experiences, risk and financial management and strategies are combined in a single instrument.
Concretely, at Bybit, five products are brought together in a single account, namely:
- spot trading
- Margin Trading
- Perpetual contract in USDT
- Perpetual contract in USDC
- USDC Options
Spot trading and margin trading are two new features of Bybit, which is now positioned among the most complete crypto trading platforms. It should be noted that the popularity of Bybit was above all made on derivative products, in particular perpetual contracts and derivatives.
Bybit, a second wind in the crypto industry
In the market for centralized exchanges or CEX (Centralized Exchange), few players can claim to compete in innovation with the Binance whale. However, Bybit provides an exclusive solution with its CTU, which includes spot and margin products, unlike Binance.
Thus, no more wallet-to-wallet transfers. It’s all in the unified trading account. This is a gain in speed and efficiency that allows you to take advantage of market opportunities more quickly.
For good reason, in addition to being extremely volatile, cryptos evolve in an environment where the market can turn around in the blink of an eye. The CTU then allows you to seize opportunities on the fly and to adapt your trading strategy more quickly. Let’s see what are the advantages brought by this account of a new kind.
Easier asset management with Bybit
Thanks to the CTU, users have an easier and centralized view of their assets. That is, they can see their total balance and make more convenient use of it across different markets instead of tracking multiple balances on separate accounts at the same time.
The CTU appears pragmatic and flexible. The potentialities offered make the transactions more efficient in their support thanks to several features as below.
Consolidation of assets to offset profits and losses
Assets are considered part of a block. As a result, profits and losses can cancel each other out. Moreover, unrealized profits on derivative positions can be used for profit, thereby increasing capital efficiency.
Also, the margin calculation in the CTU is done at the account level instead of the position level. Therefore, losses on a position do not necessarily result in liquidation.
All this is even more instructive for hedging. This is because margin requirements are calculated separately with separate trading accounts.
Previously, products such as Spot, USDT Perpetual Contracts and USDC Options could not be cross-margined. With the CTU, the position and its hedge are treated in a single account, the risk of compensation is thus integrated. Therefore, there is no need to necessarily invest more capital.
Even more leverage
In fact, the CTU is an upgraded version of Bybit’s unified margin account launched in the year 2022. It supports just four cryptos (BTC, ETH, USDT, and USDC), while the CTU supports more of 60.
The platform has usually distinguished itself by its leverage effects which can go up to 100 times.
Any good self-respecting trader always keeps this concept in his sights. Bybit has therefore understood the challenge and allows its users to increase it up to 5 times the standard with CTU.
Additionally, users have the ability to use all assets in their accounts to use as collateral on derivatives, including USDT perpetual, USDC perpetual, and USDC options contracts.
Optimization of margin calculation and risk control
Liquidating at the position level can magnify losses, as it does not take into account your entire wallet.
In the sense of consolidation, the margin calculation is more accurate with the CTU, since it takes into account unrealized profits and losses.
As for the risks, they are calculated in USD with the value of the CTU. For clarity, the conversion rate on different assets varies with liquidity conditions, but the formula for calculating the USD value of your UTA is as follows:
Number of Assets x USD Index Price x Conversion Rate (100% for USDC, 99.5% for USDT, 95% for BTC and ETH).
In fact, if the total assets of the CTU meet the initial and maintenance margin requirements, investors can place new trades even if some of the asset amounts have negative equity.
Higher borrowing and lending rates with CTU
Traders with a CTU account benefit from attractive over-the-counter (OTC) lending terms. Thus, traders can use supported assets as collateral to purchase USDT at a reduced interest rate using the OTC lending facility.
In addition, traders have the option of borrowing for up to one year, for 4 times the value of the derivative and cash assets. Lenders, on the other hand, have access to prepayment options.
How to get on the CTU page?
At this point, you already know a lot more about Bybit’s unified trading account. All you have to do is jump on the platform. For this, nothing easier when you already have an open account.
It is recommended to start by converting one of its sub-accounts to UTC instead of the main account, because the process is irreversible. This allows you to experience this innovation while keeping the door open to more traditional operation.
For the rest, just follow the steps in the tutorial below and your adventure will begin with the CTU. Although it is in English, French subtitles are available.
In conclusion,
The CTU of Bybit stands out for its operational ease in combining all trading instruments in a single account. To this end, it brings a new deal to the user experience. Thus, the platform confirms its position as a challenger in a market where the cards are not yet distributed. Moreover, it was last November that the CEX with 10 million users unveiled its Wallet Web3. In addition, it places users at the heart of its ecosystem. As an example for trading, they have access to the platform’s APIs and benefit from continuous technical support 24/7. Bybit is therefore establishing itself as an increasingly essential player among centralized exchanges.
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