Comparison Between a Unified Trading Account and Standard Account

    bybit2023-12-29 05:53:10

    The Standard Account is Bybit's original legacy account option, serving as the platform's initial account type. Starting from Sep 2023, all new users will gradually default to the Unified Trading Account (UTA), underscoring the importance of comprehending the distinctions between these two (2) account types.

     

    While the Standard Account necessitates holding specific assets to engage in particular trading activities, the UTA enables traders to manage and utilize various supported margin assets in one account as collateral and converted into USD as margin balance for trading, removing the need to possess the exact settlement coin for a given product. This enhancement notably boosts capital utilization for UTA users, promoting greater flexibility and efficiency in their trading endeavors. 

     

    In this article, we’ll delve into a detailed comparison between the Standard Account and UTA.





    1. Overall Differences

    Standard Account

    Unified Trading Account

    Trading Margin Requirements

    Need to possess the specific asset related to a particular trading product in each different account to participate in trading activities.



    For example, the trader will need to hold USDT in the Derivatives Account in order to trade the USDT Perpetual contract. 

    Can use a range of supported margin assets as collateral, eliminating the necessity to hold the exact settlement asset for a specific product.



    For example, the trader is holding BTC in a Unified Trading Account, and the BTC’s equivalent USDT value after considering the collateral value ratio can be used to place a USDT Perpetual order. 

    Flexibility and Accessibility

    Pose limitations for traders who do not hold the exact assets required for certain trading products, potentially restricting their trading options.

    Offering greater flexibility, enabling traders to engage in a wider variety of trading opportunities without being hindered by asset type constraints.

    Accounts to Manage

    1. Funding Account

    2. Spot Account

    3. Derivatives Account

    4. USDC Derivatives Account

    1. Funding Account

    2. Unified Trading Account

    3. Inverse Derivatives Account

     

    You can manage deposits and withdrawals using the Funding Account.

    Trading Products Supported 

    Spot Account:

    • Spot

    • Spot Margin

    • Leveraged Tokens


    Derivatives Account:

    • Inverse Perpetual & Futures

    • USDT Perpetual

    Unified Trading Account

    • Spot

    • Spot Margin

    • Leveraged Tokens 

    • USDT Perpetual

    • USDC Perpetual & Futures

    • USDC Options


    Inverse Derivatives Account:

    • Inverse Perpetual & Futures

    Unrealized PnL Offset across Products

    Not Supported

    The unrealized profits and losses from different Derivatives product lines in UTA can be offset against each other in Unified Trading Account (not applicable to Isolated Margin mode). For more information, please visit here





    2. Types of Trading Products

    Spot and Margin Trading

    USDT Perpetual

    USDC Perpetual 

    USDC Options 

    Inverse Contracts

    Standard Account

    Spot Account

    𐄂

    𐄂

    𐄂

    𐄂

    Derivatives Account

    𐄂

    𐄂

    𐄂

    Unified Trading Account

    Unified Trading Account



    (For Isolated Margin mode, Spot Margin and USDC Options are not supported in UTA)

    𐄂

    Inverse Derivatives Account

    𐄂





    3. Assets as Collateral Required

     

    USDT Perpetual

    USDC Perpetual & Futures

    USDC Options 

    Inverse Perpetual & Futures

    Standard Account

    USDT

    Not supported in Standard Account

    The respective settlement assets

    Unified Trading Account

    Any supported margin assets in Unified Trading Account 






    4. Position and Margin Mode

     

    Margin Mode

    Position Mode

    Standard Account

    1. Isolated Margin

    2. Cross Margin

     

    Margin mode switching is not supported whenever there are open positions or active orders.

    1. One-way Mode 


    2. Hedge Mode

    • Support different leverage settings for long and short positions. 

    • Only available for USDT Perpetual Contract.

    Unified Trading Account

    1. Isolated Margin

    2. Cross Margin

    3. Portfolio Margin

     

    Margin mode switching can be supported even when there are open positions or active orders, subject to the criteria stated here.

    1. One-way Mode 


    2. Hedge Mode 

    • Both long and short positions have to use the same leverage settings. 

    • Only available for USDT Perpetual Contract.





    5. Borrowing and Interest

     

    Spot Margin Trading

    USDT Perpetual

    USDC Contracts

    Inverse Perpetual & Futures

    Standard Account

    Users can borrow from the platform while using other margin assets as collateral for repayment. Interest will be charged on the borrowed amount.

    Borrowing not supported

    Borrowing not supported

    Borrowing not supported

    Unified Trading Account

    Users can borrow from the platform while using other margin assets as collateral for repayment. Interest will be charged on the borrowed amount. For more information, please visit here.

    Borrowing not supported

     

     




    6. Risk Management

     

    Liquidation

    Standard Account

    Liquidation triggers when the Mark Price reaches the Liquidation Price. The liquidation price is calculated based on parameters such as initial margin rate, maintenance margin rate, and available balance. 

    Unified Trading Account

    According to different margin modes, liquidation is based on different criteria. 


    Isolated Margin Mode: Similarly to Standard Account, liquidation triggers when the Mark Price reaches the Liquidation Price. 


    Cross or Portfolio Margin Mode: According to the initial margin and maintenance margin of the position, calculate the account's initial margin rate and maintenance margin rate. When the account's maintenance margin rate reaches 100%, liquidation is triggered. For more information, please visit here.

     

     

     

    To learn more about the liquidation process, please refer to the following articles: 

    Was it helpful?
    yesYesyesNo