What is the Unified Trading Account on Bybit and how to use it most effectively

If you are an active trader on Bybit, you’ve probably heard of the Single Trading Account (STA). But what exactly is this account, and why has it become so popular? The Single Trading Account is a revolutionary trading management system that allows users to place all their trading operations in one place without constantly switching between different accounts.

Basic Structure and Organization of Your Account

Unlike traditional systems, the Bybit Single Trading Account is organized into a clear two-account structure. First, there is the Funding Account—this is where you deposit and withdraw funds. Second, there is the Single Trading Account itself, where all trading activities occur. This organization separates asset storage operations from trading activities, enhancing security and transparency in fund management.

The uniqueness of this account lies in its ability to unify access to all major Bybit trading products in one place. These include Spot Trading, Spot Margin Trading, USDT and USDC Perpetual Contracts, USDT and USDC Futures, Inverse Perpetual Contracts, Inverse Futures, as well as USDT and USDC Options. This multi-functional approach means traders can execute complex strategies using different instruments without spreading capital across multiple accounts.

How Margin and Account Balance Work

One of the most important concepts to understand when working with the Single Trading Account is the Margin Balance. This indicator relates only to cross margin and portfolio margin and represents the total amount you can use as margin for your trading positions. The margin balance includes your wallet and unrealized profit/loss from perpetual contracts.

It’s crucial to distinguish between the margin balance and the available balance. The margin balance shows the maximum amount theoretically usable, but the available balance is what you can actually use right now to place new orders. This figure constantly changes depending on your positions, open orders, and unrealized P&L.

The total USD margin balance on your account is calculated using a complex formula. The value of each asset is multiplied by its index price in USD and by the collateral factor (depending on the liquidity of the specific coin). Formally:

Total asset value (USD) = Sum of (Asset 1 × Index USD Price × Collateral Factor + … + Asset N × Index USD Price × Collateral Factor)

Note that the collateral factor applies only to assets with a positive balance. If an asset’s balance is negative, the factor is automatically set to 100%, regardless of its usual value.

The Three Main Margin Modes on Your Account

Bybit offers three basic margin modes for your account, each with its own features and advantages.

Isolated Margin Mode — this is the most conservative approach. In this mode, margin for each position is isolated, meaning if one position is liquidated, it does not affect others. However, this requires holding the relevant margin coin directly on your account. For example, trading USDT perpetual contracts requires USDT, while options may require USDT and USDC depending on the contract.

Cross Margin Mode allows you to pool margin across all positions. Unrealized profit from one position can be used as margin for others. This mode is more flexible and makes more efficient use of capital but also increases risk, as losses in one position can impact all your positions simultaneously.

Portfolio Margin Mode — this is the most advanced. It calculates your overall portfolio risk, considering collateral risk offsets and unrealized P&L between spot and derivatives. This risk-based policy uses stress testing and volatility to determine margin requirements.

Switching between margin modes requires meeting certain conditions. For example, to switch to cross margin, leverage and risk limits for long and short positions must be equal. If these conditions are not met, the switch will not occur.

Using Assets as Collateral on Your Account

Not all assets in the Single Trading Account can be automatically used as collateral for derivatives and spot margin trading. Bybit supports a specific list of margin assets, each with its own collateral factor based on liquidity and volatility.

You have the freedom to choose which assets to use as collateral. On the asset page of your account, you can select assets for collateralization. The only restrictions are that USDT and USDC are always set as default collateral and cannot be disabled. This is intentional, as these stablecoins serve as the fundamental base for margin calculations.

The system calculates collateral value based on the index price, not the current spot price. For basic pairs like BTC/USD, the index price is derived directly from the USDT perpetual index multiplied by the USDT conversion factor. For other coins, if there is no USDT perpetual index, the last spot market trade price on Bybit is used.

Practical Risk Management and Account Monitoring

During trading, two key indicators are critical: the Initial Margin Rate (IMR) and the Maintenance Margin Rate (MMR). IMR is the minimum margin required to open a new position, while MMR is the minimum margin needed to maintain an existing position.

When the MMR reaches 100%, liquidation begins. The system will start closing your positions in a certain order to bring the MMR below the critical level. In isolated margin mode, liquidation occurs at the mark price of the position, while in cross and portfolio modes, a specific liquidation sequence is followed.

Bybit sends three types of risk alerts:

1. Auto-liquidation warning — sent when the MMR reaches 90% and there is a loan balance. These alerts are sent no more than once every 4 hours.

2. Derivative liquidation warning — sent when the MMR exceeds 85% and there are derivative positions. This provides a last chance to act.

3. Maximum loan amount warning — sent at two critical points: when the loan reaches 90% of the maximum and when it hits 100%.

Be aware that these alerts may be delayed; therefore, do not rely solely on them. Users should constantly monitor their account.

How to Properly Place Orders on Your Account

One of the main advantages of the Single Trading Account is the ability to place orders even if you lack sufficient of the relevant margin coin. If you are in cross margin or portfolio margin mode and hold enough supported collateral assets in USD equivalents, you can open positions and place orders. After executing a trade, the system will automatically create a loan in the required coin.

However, this only works if your margin level is sufficient. When IMR reaches 100%, new derivative and spot margin orders requiring margin cannot be placed. This is a protective mechanism against excessive risk.

An interesting feature is the ability to use unrealized profit. Unlike traditional systems, the Single Trading Account allows traders to use unrealized gains from one position to place new orders. This improves capital efficiency but also increases risk, as adverse market movements can lead to faster losses.

Loan System, Interest, and Fees on Your Account

Asset loans on your account occur automatically in several scenarios. First, through wallet balance reductions due to fees or payouts. Second, unrealized losses on derivative positions can generate loans. Third, placing limit orders on options reserves a loan amount as a premium.

Each loan incurs interest, but there are exceptions. For unrealized loans resulting from unrealized derivative losses, a no-interest zone applies. Loans within this zone are not charged interest. If loans exceed this zone, interest is charged on the entire amount, with hourly accrual.

Hourly interest is calculated as:

Hourly interest = Loan amount × Hourly interest rate

For cross margin, the loan amount considers capital minus the initial margin for options and positive option value, while for portfolio margin, only capital minus frozen assets are considered.

There is also a penalty system for excessive loans. When the loan exceeds 100% of the maximum limit, a penalty multiplier is applied, calculated as the cube of the utilization coefficient. For example, if your loan is 120% of the maximum, the multiplier is 1.2³ = 1.728, significantly increasing the cost.

Loan Repayment and Asset Management

Traders can repay loans in several ways. The simplest is to click the Repay button in the Single Trading Account. Note that Bybit charges a 0.1% fee on the repaid amount as a conversion fee.

Alternatively, you can deposit or transfer assets from another account; the system will automatically deduct the loan from your positive wallet balance.

Another method is active trading: selling margin assets via spot trading and converting them into borrowed assets will also repay the loan. However, at IMR 100%, placing buy orders for assets with lower collateral factors using assets with higher factors is not permitted.

The system can also automatically execute repayments in critical situations. Auto-repayment triggers when the asset loan exceeds the maximum limit or when the MMR reaches 100% with active orders. In the first case, the system will sell liquid assets to buy assets with deficits, reducing the loan to 90% of the maximum.

Monitoring Transaction History and Asset Management

To maintain full control, users need to understand how to view and interpret their transaction history. The Single Trading Account transaction log shows all fund flows on your account, including conversions, loans, interest, repayments, transfers, trading fees, funding fees, liquidations, and even spot and perpetual bonuses.

Each record contains detailed info: timestamp, coin type, contract, transaction type, direction, amount, execution price, fee, cash flow changes, and updated balance. This allows traders to track every penny precisely.

Many users are interested in the actual amount they can transfer out. This is the maximum amount of a specific coin that can be withdrawn from the Single Trading Account. It is calculated considering unrealized losses, initial margin, frozen amounts for active orders, discount losses, and negative option value. Note that unrealized profit can only be used for trading, not for transfers out of the account.

Special Features and Advantages of Your Account

One of the most interesting aspects of the Single Trading Account is the portfolio margin mode with spot hedging. Enabling spot hedging generally reduces overall margin requirements because the system offsets risk between spot and derivative positions. However, in some cases, it can increase margin needs.

For example, if you lack sufficient spot assets to hedge derivative positions, margin may increase. Similar effects can occur if delta directions of spot and derivative positions differ significantly or if there is a large deviation between the index price and the derivative’s underlying price.

While spot hedging is not enabled by default, you can choose whether to participate. Activation checks whether the MMR will fall below 100% after activation. If it remains at or above 100%, activation will not succeed.

Your bonuses and fee savings remain accessible after switching to the Single Trading Account. However, you cannot claim them in the Bonus Center until the update process completes. If your wallet balance is negative, you cannot receive rewards. When receiving bonuses and fee savings simultaneously, bonuses are used first.

When setting stop-loss orders, note that they do not guarantee against liquidation. In isolated margin mode, liquidation occurs at the mark price, which may reach the liquidation price faster than the last trade price or index price. In cross and portfolio modes, unrealized P&L and discount losses also affect MMR, so the initial trigger price may become outdated. It is recommended to use close orders for MMR as an additional protection.

Understanding Coefficients and Limits on Your Account

Each coin in the Single Trading Account has a collateral factor that directly affects your margin balance. These factors vary depending on liquidity and volatility. For assets with a positive balance, the factor is applied as specified; for negative balances, it is always set to 100%.

The maximum loan amount is the upper limit of what you can borrow on your account. The interest-free limit applies only to loans resulting from unrealized derivative losses and is only relevant for USDT and USDC. The interest-free limit is calculated per account, while the maximum loan limit is shared across main and sub-accounts.

These figures depend on your VIP status. Higher status grants larger limits for both loans and interest-free amounts. This makes the Single Trading Account more flexible for experienced traders actively using margin strategies.

Understanding how your account works on Bybit is key to successful and safe trading. The Single Trading Account provides powerful tools for managing positions but requires responsible risk management. Regularly monitor your margin balance, understand your leverage, and always have a risk management plan before opening positions.