Bybit conditional order tutorial

What is a conditional order?

A bybit conditional order describes an order that is only executed under certain conditions. You can use conditional orders, for example, to open positions only if certain price movements or price targets are reached. Alternatively, you can use a conditional order to realize profits or limit your losses under certain conditions.

In this tutorial you will learn how to create a conditional order on Bybit, what options are available to you and what you should pay special attention to.

At a glance – Using conditional orders on Bybit

Time needed: 2 Minuten.

The 3 easy steps for the perfect conditional order on Bybit:

  1. Set trigger price

    Set your trigger price. This is the price at which your order will be activated. Here you can also choose between a last-, index- and mark-price as price source (more info below).Enter a trigger price for conditional order on Bybit

  2. Set quantity and market vs. limit order

    Next, you determine the size of your position in US dollars under “Qty” and decide whether you want to execute a market order directly or just post a limit order when a trigger price is activated.Conditional limit order on Bybit

  3. Long or short with TP and SL

    After you have decided to go long or short, we strongly recommend you to set a Stop Loss (SL) to limit your losses. If you already have a price target in mind, you can additionally set a Take Profit (TP) order to automatically close your trade in profit.Take Profit on Bybit

Bybit Conditional Order Tutorial – Step by Step

Step 1: The Trigger Price

First, you set the trigger price. This decides at which price your order will be activated or triggered. In other words, the trigger price describes the condition under which the order will be executed.

Enter a trigger price for conditional order on Bybit
Enter trigger price

By clicking on the “+/-” icon, you can also move the trigger price up and down by fixed amounts without having to use your keyboard.

The difference between last, index and mark

There are three different options available as the source for the trigger price:

  • Last: The last price traded on Bybit
  • Index: The current average price on Bybit
  • Mark: The mark price is a reference price of Bybit, which is used to calculate liquidations
Advantages of the Last Price

The execution of orders is based on the last traded price. This allows the trader to better estimate the execution price.

Disadvantages of the Last Price

Especially when using conditional orders for setting a stop-loss order, it may happen that the stop-loss is not executed before the position is liquidated.

Advantages of the Mark Price

Especially when using conditional orders to set a stop-loss order, you can use the mark price to ensure that the stop-loss is executed before the position is liquidated.

Disadvantages of the mark price

Since the Mark price is only a calculated reference price, there may be a discrepancy between the executed average price and the triggering Mark price during order execution (“slippage”).

PriceAdvantagesDisadvantages
Last-priceGood estimation of the execution priceStop loss may not be triggered before the position is liquidated
Index-priceConvenient and meaningful average priceCannot be used for trades
Mark-priceStop loss is always executed before liquidating a positionDeviation between execution price and displayed mark price possible (“slippage”)
Advantages and disadvantages of different price sources

Step 2: Market or Limit Order and Qty

Next, you need to decide between a Limit and a Market order for your conditional. A market order is simply executed directly against the current order book. So the execution is guaranteed, but the execution price may slightly differ. A limit order, on the other hand, is always executed at the specified price. However, it may happen that not the entire order is executed (partial execution).

Market order
Market order for a conditional order

If you decide to place a limit order, you will also enter the trigger price for the limit order itself.

Conditional limit order on Bybit
Limit order execution price at 64050 USD

The “Qty” field stands for “Quantity” and indicates the number of US dollar contracts in the position. For example, if you are trading Bitcoin USD contracts, a Qty of 450 corresponds to a position size of 450 USD in Bitcoin.

Step 3: Long and short with take profit and stop loss

Next, you decide whether to go long or short. With a long position, you bet on rising prices. With a short position you bet on falling prices. If you want to learn more about long and short positions and how to trade them, we have prepared a Bybit Long and Bybit Short tutorial for you. In this tutorial we will use a long position as an example from this point on.

Set a take profit

Directly below the long / short selection you can optionally set a take profit price. If the price reaches this price target, your position will automatically be closed in profit. If you have a specific percentage target in mind, you can directly select from 25% to 150% profit here.

Take profit for conditional on Bybit
Set a take profit

Even if you set a take-profit price, you can still close your position manually as long as the take-profit has not been triggered yet. Behind the price field itself, you can use the drop-down button to select the price source for the stop loss discussed above (Last, Index or Mark).

Set a stop loss

You can set a stop loss directly under the take profit settings. We always recommend setting a stop loss to limit risk. Behind the price field itself, you can use the drop-down button to select the price source for the stop loss discussed above (Last, Index or Mark).

Stop loss order using a conditional on Bybit
Stop loss on Bybit

At this point, you can either choose one of the preset percentages for your Bybit Conditional or manually enter a US Dollar quote. If the price of the stop-loss order is hit by the mark price, the position will be sold (at a loss) at the market price to prevent further losses. The percentage corresponds to the loss in relation to your set assets.

The Close On Trigger Option

On Bybit, the additional option “Close On Trigger” is available for conditional orders.

Close on trigger option
Close On Trigger Option

If you activate the option, your position will act like an instrument to close other positions. In fact, in case of activation, only other positions will be closed with it. If there is not enough capital available, all other active orders will be automatically cancelled or adjusted.

Frequently asked questions and answers about Conditional Orders on Bybit

What is a conditional order on Bybit?

A conditional order is an order that is created in advance, but only becomes active when a certain price is reached. This price is called the trigger price.

When should I use a conditional order?

A conditional order makes sense if you do not want to wait for a certain entry price but want to open a position automatically if or as soon as a certain price is reached. Another possibility would be the attempt to participate in short, indefinite but extreme price movements (wicks).

How to use a conditional order?

To use a conditional order, you set a trigger price and enter all the important parameters and options. You will learn how this works in this article.

How do I cancel a conditional order on Bybit?

Navigate to “Conditional” in the tabs next to the position tab. Under the Conditional tab, the orders that have not yet been triggered are listed. On the far right of the position entry, under “Action”, you will find the “Cancel” option, which will remove the entry.Cancel a conditional order on Bybit

Important risk notice:
This service or the provider advertised here is only suitable for professional traders. Users without sufficient experience usually suffer a total losswhile trading here. Trading with leverage is highly risky and leads to poor risk management. Use this service only as a professional trader with sufficient experience in trading and leverage.

Also in / Auch auf: Deutsch

Similar Posts

Leave a Reply

Your email address will not be published.