Bybit Spread Trading allows traders to simultaneously buy and sell two related instruments in order to hedge risk or profit from price discrepancies. Read more.

Whether markets are flying high or wobbling unpredictably, one thing remains true: traders are always looking for smarter ways to 

 and find profit opportunities. That’s where Bybit Spread Trading comes in. This feature is tailor-made for those who want to go beyond basic buy/sell plays and start taking advantage of price discrepancies between related instruments. In this guide, we’ll walk through exactly how Bybit Spread Trading works, why it matters and how you can start using it today, whether you’re 

is a newly launched Bybit feature that allows users to simultaneously buy and sell two related instruments — such as Spot, Perpetual or Expiry contracts with different settlement dates — in order to hedge risk or profit from price discrepancies.

This type of trading strategy is popular among institutional and professional traders because it enables more precise, controlled market exposure. However, with Bybit’s interface, the barrier to entry is significantly lowered, opening the door for individual traders to tap with just a few clicks into a powerful set of tools.

At its core, Spread Trading on Bybit is about executing what’s called a combo trade. This means entering two positions at once: one long, one short. These positions are taken on related instruments, such as a BTC Spot trade and a BTC Perpetual contract, with the idea that their prices will either converge or diverge in a way that benefits your position.

When you place a buy combo, you’re buying the instrument with the longer expiration (the “far leg”) and selling the one that expires sooner (the “near leg”). 

A sell combo is the reverse: selling the far leg and buying the near leg. The profit (or loss) comes from how the spread between these two instruments shifts over time.

For example, if you believe the spread between a Perpetual and a Quarterly Futures contract will widen, you can buy the combo. If the spread increases after your entry, that movement becomes your profit. Bybit calculates your 

 prices automatically, based on the mark prices and your defined “order price,” so there’s no need to manually crunch the numbers.

Perhaps the most important feature here is atomic execution. This ensures both sides of your combo trade are filled together, in equal quantities, or the trade doesn’t go through at all. It removes “leg risk,” which is the danger of getting filled on one side of the trade, but not the other. In volatile markets, that alone can save you from an unwanted mess.

Spread Trading on Bybit currently supports combinations such as Spot and Perpetual, Spot and Expiry, Perpetual and Expiry, or even two Expiry contracts with different dates. This flexibility lets you build strategies that align with different market outlooks — bullish, bearish or neutral.

There’s a strong reason why Spread Trading is a go-to for many experienced traders: it allows for strategic plays that are more sophisticated than just guessing price direction. On Bybit, it’s not only powerful, but also convenient.

First, you get price certainty. Your spread is locked in at the price you specify. There’s no 

 between legs because the entry prices are automatically calculated and matched. You’re trading the spread, not the individual legs.

Secondly, the trading experience is smoother. Instead of placing two separate orders and manually trying to sync them, Bybit handles everything as a single transaction. You don’t have to worry about whether one leg gets filled and the other doesn’t — that risk is eliminated through atomic execution.

Third, this setup is a great hedge against volatility. By taking opposing positions on two related contracts, you reduce exposure to sharp price movements. Your P&L becomes more about the relative performance between contracts, rather than the market direction itself.

There’s also a strong cost advantage. Trading spreads on Bybit is significantly cheaper than doing it manually. You pay only half the trading fees you’d incur if you placed two individual trades on the order book. For high-volume or 

, that translates to meaningful savings over time.

Finally, it unlocks strategy flexibility. Whether you're 

 funding rates between Spot and Perpetual, doing 

 with different Futures contracts or taking advantage of price convergence before expiry, this platform gives you the tools to execute those ideas efficiently.

How to get started with Bybit Spread Trading 

Now that you have a better understanding of how Bybit Spread Trading works, let’s look into how to get started. Please note that you’ll need to have a Bybit account in order to proceed. If you don’t already have one, please check out our 

 for more information on how to create a Bybit account.

: Log in to your Bybit account and hover your cursor over the 

: The available spreads are organized in a grid, with each tile representing a unique combo. Choose your preferred combo to trade.

Tiles with a border around them signify that Spread Trading offers a better price. Hover over a tile for more details, or use the bar at the bottom of the grid to explore more options.

On the order placement page, set up your order with the following parameters:

to place your order. A pop-up window will appear for you to confirm your order details. Then, click on 

Congratulations — you’ve successfully placed an order!

You can view your Spread Trading orders from any trading page (Spread Trading, Spot and Futures), as they all share the same order data.

 to view your active orders. You’ll be able to view the combo, underlying asset, order price and more. 

If you would like to adjust your order parameters, you may click on the pencil icon under 

. To cancel your order, simply click on the order’s corresponding 

to view your completed orders. To view each order’s information on each leg, click on the order’s corresponding 

button. For additional insights, click on 

Spread trading isn’t for everyone — but if you’re someone who enjoys strategic trading, hedging or arbitrage, it’s a tool worth adding to your arsenal. It appeals to traders who are less interested in taking a directional bet, and more focused on capitalizing on inefficiencies in the market.

You don’t have to be a pro trader to benefit, either. The simplified execution and intuitive UI mean even intermediate users can explore advanced strategies without being overwhelmed. As long as you understand how spreads work, and how your P&L is affected by their movement, you’re already halfway there.

More importantly, in times of market uncertainty or low volatility — when price action feels sluggish — spread trading gives you an alternative way to profit. It keeps you in the game — even when momentum plays aren’t cutting it.

Bybit Spread Trading is a powerful tool that combines simplicity with sophistication. Whether you're looking to hedge, save on fees or experiment with 

 strategies, it offers a clean and user-friendly way to do so. With lower risk, lower costs and plenty of flexibility, Bybit Spread Trading is a smart move for any trader looking to level up their game — especially when markets get messy.

Intermediate

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Bybit Spread Trading: Smart strategies for market swings

Our weekly crypto derivatives analytics report delves into macro events; the current state of crypto and trading signals from spot trading volume; and futures, options and perpetual contracts.

Positive sentiment around potential US trade deals has fueled a sixth straight day of gains in risk-on assets. Bitcoin, boosted by this sentiment and its own drivers, such as strong ETF inflows and regulatory progress, has outperformed gold and equities, rising 14% over the past month and consolidating at $94K. Bitcoin’s implied volatility has decreased significantly, while realized volatility has stabilized above 30%, a level that’s been its floor for the past 18 months.

Please check out the report’s highlights.

Perp at months’ high; traders not yet all-in

After rallying from $75,000 to over $95,000 in early April, Bitcoin has traded sideways at around $94,000 this week. Open interest remains stable for April, near all-time highs at $8B, while trade volumes have decreased to $10B per day. Lower trade volumes correlate with lower realized volatility, and perp positioning suggests that traders are waiting for another rally before committing to major positions, mindful of recent sell-offs.

Bitcoin volatility declines to 18-month low

Bitcoin’s volatility has declined, nearing a previously held floor of 35–40%, a level from which it has consistently rebounded over the past 18 months. Implied volatility has followed a 10-point drop in realized volatility to just above 30%, the floor of its 18-month range. Options activity shows a preference for puts, as BTC’s spot price is remaining stable. Volatility smile skews favor out-of-the-money calls, particularly for long-term options, while short-term options are nearly neutral.

BTC volatility smiles skew toward OTM calls

Bitcoin's volatility smiles now favor out-of-the-money (OTM) calls across all tenors, recovering from a put-call skew that strongly favored puts earlier in April. Ether is showing a similar recovery at short tenors, but longer-term skew remains slightly bearish. While ETH funding rates are positive, longer-term option smiles are skewing toward puts, thus presenting mixed sentiment. For BTC, derivatives markets are indicating clearer bullish signals, including positive funding rate spikes, positively sloped futures yields and a skew toward OTM calls.

Advanced

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Bybit X Block Scholes crypto derivatives analytics report (Apr 30, 2025): Bitcoin volatility at 18-month low; data shows traders aren’t yet all-in

Grayscale has launched the Bitcoin Adopters ETF, which tracks companies with a corporate Bitcoin treasury strategy. 

Daily top performer — Curve Finance (CRV)

The S&P 500 rose 0.15% as investors shrugged off recession fears and reacted positively to strong tech earnings, with focus now shifting to upcoming Apple and Amazon results. Gold dropped to $3,245 on US-China trade optimism and a stronger dollar, with Fed rate cut hopes cushioning losses. The Coindesk Indices, which tracks the broader crypto market, fell 0.51%, with Bitcoin and Ether down 1.24% and 0.86%, respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is CRV, which surged 11.4% after Spark's integration of new Curve pools, enhancing stablecoin liquidity and improving DeFi infrastructure.

Curve Finance (CRV), launched in 2020, is a DEX on Ethereum for low-fee swaps between stablecoins and similar assets, with yield-earning pools and DAO governance via the CRV token. Spark has 

 sUSDS/USDT and USDC/USDT Curve pools to its Spark Liquidity Layer (SLL), boosting stablecoin liquidity, enabling easier swaps, and supporting future direct USDT deposits and withdrawals via Spark Savings.

Check out the latest prices, charts, and data of 

 the Bitcoin Adopters ETF, which tracks companies with a corporate Bitcoin treasury strategy. The ETF includes firms like Tesla, Blockstream, and MARA. It reflects the growing trend of companies acquiring Bitcoin as a hedge against inflation. Grayscale's fund aims to provide exposure to companies in sectors like mining, automotive, and energy. Institutional BTC adoption, including Michael Saylor's Strategy, is driving Bitcoin's scarcity, which may lead to a supply crunch and rising Bitcoin prices in the future.

Yesterday, BTC spot ETFs saw $323.3M in outflows, with $32M from GBTC and $291.3M from other ETFs.

 its largest Galxe points event, running from May 4–8, 2025, where users can complete tasks to earn points. They also introduced the AlphaWave competition, a 7-day AI trading contest featuring 25 crypto agents. Users can vote for the agent they think will win to earn rewards and complete Galxe quests. New tasks will be added throughout the week.

Beginner

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Grayscale launches Bitcoin Adopters ETF, tracking companies with BTC treasury strategies

Discover how USDY, a yield-bearing stablecoin from Ondo Finance, offers secure, regulated returns backed by US Treasuries across multiple blockchains.

, which are crypto assets pegged to a major fiat asset, have gained tremendous popularity and are helping investors deal with the typical volatility of the market. For many years, stablecoin cryptocurrencies have been used for payments, principal value storage, B2B transactions and more. However, traditional stablecoins have always lacked the ability to generate yield. These assets are fixed at a certain rate (e.g., $1) and, due to inflation, they don’t protect against your funds’ value erosion. 

 have started to gain traction over the past several years. These "new generation" stablecoins, unlike their traditional counterparts, not only provide rate stability but also generate yields, growing your investment over time. One of the leading assets among yield-bearing stablecoins is US Dollar Yield (USDY), issued by Ondo USDY LLC, part of 

Backed by low-risk traditional finance (TradFi) reserves, USDY generates yields and is a fully composable asset that can be used throughout the DeFi ecosystems of multiple blockchains. The reserves and issuance of the stablecoin are also subject to high regulatory controls. In the world of yield-bearing stablecoins, USDY is among the top choices in terms of popularity, regulation and security.

What is the Ondo US Dollar Yield (USDY) Token?

 (USDY) is a yield-bearing stablecoin offered by Ondo USDY LLC, part of the Ondo Finance DeFi solutions provider. 

USDY’s value tracks that of the US dollar, and it’s backed by Treasury bills and demand deposit reserves. The coin issuer’s parent company, Ondo Finance, specializes in institutional-grade crypto solutions. Ondo aims to make on-chain institutional-grade finance tools and infrastructure accessible to anyone.

USDY was launched in August 2023. As of April 2025, the stablecoin has become available on 

 — a level of multichain coverage that few other stablecoins can match.

While USDY’s price tracks the US dollar’s, its rate is typically somewhat higher than $1 because yields earned by each unit of the stablecoin are added to it, increasing its nominal value.

 (RWAs), primarily Treasury bills, although some portion of the reserves may also be represented by bank demand deposits. Both of these financial asset types are considered cash equivalents.

To ensure the Ondo ecosystem's security, Ondo backs each $100 equivalent of USDY with reserves worth $104, maintaining a 4% overcollateralization rate at all times.

Ondo Finance takes the transparency of USDY seriously. The company has established a bankruptcy-remote mechanism, with a separate corporate entity controlling the issuance and oversight of the stablecoin in various ways, including a board of directors with an independent director, and segregation of assets and reporting from Ondo.

USDY is a fully composable asset that can be used in the DeFi ecosystems of its host blockchains for various purposes, such as collateral, 

USDY provides several significant benefits for its holders. First, it allows eligible individual and institutional investors to earn dollar-denominated yield. This is in contrast to traditional stablecoins, which provide no yield opportunities at all. While other yield-bearing stablecoins also generate returns for holders, some of these pay the yields in volatile cryptocurrencies, rather than high-quality assets.

Thanks to its dollar peg, USDY offers both yield and relative stability. Additionally, it’s fully composable, creating opportunities for use across various DeFi protocols. USDY is available on seven blockchains, providing access to more DeFi opportunities than most yield-bearing stablecoins.

The coin may also be used for passive holding, growing in value over time as yields accrue. In this capacity, USDY represents a good low-risk, on-chain investment opportunity.

Finally, USDY’s overcollateralization and backing by high-quality TradFi assets, Treasury bills and demand deposits make it one of the most secure yield-bearing stablecoins on the market.

How does Ondo US Dollar Yield (USDY) work?

Individuals and institutional entities need to undergo an onboarding process to acquire USDY, during which they submit relevant identity, legal and tax documents. Ondo diligently applies 

 (AML) checks in order to adhere to US securities laws, the Investment Company Act of 1940 and other relevant regulations.

US and UK residents cannot apply to buy USDY, although you may be eligible if you’re a US or UK citizen and reside abroad.

If your application is approved, you can be issued USDY 40 to 50 days after your initial deposit date, although you’ll start earning yield from the first day of your investment. The minimum amount for investment or redemption is $500. You can buy USDY from Ondo using the 

 stablecoin. US dollar wire transfers are also supported for amounts over $100,000.

Redemptions are only transferred in US dollars to bank accounts outside the US. You can redeem your USDY investment at any time, and the typical timeline to receive your funds is about 2–3 business days from the date of your request.

USDY accrues yield daily. The stablecoin’s yields are structured not to incur any US federal tax obligations. Ondo doesn’t charge any performance or management fees for USDY yields. However, the company earns income from a portion of yields generated by the underlying assets backing USDY.

As noted earlier, USDY’s yields accrue to each unit of the token. Therefore, the value of one USDY is usually above $1. For instance, the average value of USDY as of the time of this writing (Apr 30, 2025) is $1.11.

For investors who prefer a fixed $1 rate for the stablecoin, Ondo offers the rebasing version, called rUSDY. Yields for rUSDY are paid to your wallet in the form of additional tokens by increasing the supply of the crypto, while the principal remains at (or very close to) $1. This is known as rebasing. USDY and rUSDY are freely convertible between each other.

The rebased version of the coin might be useful to those who need to ensure rate stability (for example, for B2B payments of agreed-upon contractual amounts) while also earning yields from their investments.

 as a swap pair with the USDT stablecoin.

USDY boasts numerous benefits for investors — low-risk yields from high-quality traditional assets, wide multichain coverage, regulatory compliance, transparency, composability and rate stability. The combination of all these benefits is quite rare in the crypto market, and the investor community is definitely taking note: USDY is already the third-highest-ranked yield-bearing stablecoin by market cap as of late April 2025. 

Since the yield-bearing stablecoin niche is expanding, the advantages of the USDY are likely to attract further interest, both among the institutional crowd and with individuals keen to access high-quality, institutional-grade crypto products.

Ondo US Dollar Yield, USDY.png

What is Ondo US Dollar Yield (USDY) and how does it work?

Trading

The ABCD chart pattern is a harmonic pattern which offers excellent risk-to-reward ratio trading opportunities. It consisting of four reversal points and and visually resembles a lightning bolt.

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The ABCD pattern is a popular harmonic formation found in 

 that identifies potential trading opportunities. Over the next few minutes, we’ll review what the pattern is, see how to incorporate it into trading strategies and look at some of its limitations.

The ABCD pattern is a harmonic formation formed on trading charts and used in technical analysis. It consists of four reversal points labeled A, B, C and D. The pattern is simple to understand and visually resembles a lightning bolt.

ABCD patterns are versatile and can be applied to any chart time frame and financial market, such as stocks, currencies, commodities and crypto. Additionally, the pattern boasts specific measurements that must appear for each point, making it a popular choice among traders. When spotted, the pattern can deliver excellent 

The bullish ABCD pattern points downward, and offers traders an opportunity to buy at point D.

The formation of the bullish ABCD pattern is as follows:

: The pattern begins with a significant high point, representing the start of the downward move.

: The price starts to decline from point A. Point B marks the end of this initial decline and the beginning of a partial bounce higher.

: As the temporary rally continues, it will retrace about 50–78% of the AB leg. Point C represents the price where the rally finds resistance and stops.

:From point C, the market experiences another downtrend that pushes below the low price of point B. Point D is the target level at which traders may consider entering a long position, or taking profits in a short position.

On the other hand, the bearish ABCD pattern is an upward formation that suggests a potential downward trend in the market. 

The formation of the bearish ABCD pattern is typically as follows:

: The pattern starts with a significant low point in the market. This represents the beginning of an upward trend.

: Point B marks the end of the upward rally and the beginning of a correction lower.

: Point C will be a higher price than point A, representing a partial retracement of the AB rally, typically about 50–78% of the distance that the upward AB leg has traveled.

: Finally, the price rallies again, surpassing the previous high at point B. Point D is the target level at which traders may consider entering a 

With a little bit of practice, you can easily identify an ABCD chart pattern. It’s often compared to a lightning bolt, due to its distinct shape and symmetry. 

Follow the steps in order to identify this pattern.

First, look for a significant swing high or low that marks the beginning of a trend. This trend will be the first of three consecutive price swings. The beginning of the first trend is point A, while the end of the trend is point B. 

Second, look for a countertrend price movement that only partially retraces the first trend. This second trend will be the smallest trend of the three waves, and is the BC leg.

Lastly, look for the third trend to be the same length as the first trend. The final point of the pattern is at point D, which completes the lightning bolt pattern.

In addition to observing the lightning bolt shape, it’s important to notice symmetry between the lengths of the AB and CD legs in both time and price. This means that the distance and time it takes for the price to move from A to B should be similar to the distance and time it takes to move from C to D. The symmetry adds further confirmation to the pattern.

To increase the effectiveness of trading with the ABCD trading pattern, it's important to follow specific measurements and geometry regarding its shape. Below are some rules to consider.

Point C will always remain above point A in an uptrend, or below point A in a downtrend.

Of the three trends in the pattern, the BC leg will be the shortest.

 and apply it to the AB leg to spot a target zone for point C. The retracement of AB will mean point C should fall within the 0.500 to 0.786 Fibonacci retracement of the initial AB trend. 

The price level of "D" must be either above or below the price level of point B (in the bearish and bullish patterns, respectively). You’ll notice some symmetry will begin to develop as point D exceeds point B.

Once points A, B and C are in place, we can begin to establish target levels for point D. Apply the 

 to points A, B and C. The point D target will rest near 1.000, 1.272 or 1.618 times the length of AB. The most common occurrence is when AB and CD are equal in length (1.000), but the other two ratios are also observed.

By adhering to these rules, traders can improve the accuracy of their ABCD pattern trading and enhance their overall performance. Keep in mind that no trading strategy guarantees success, and 

Drawing ABCD patterns on price charts involves identifying and connecting the four key points, identified above as A, B, C and D. 

These days, charting packages offer a plethora of tools to assist you with drawing. For example, traders will sometimes draw a trend line connecting each of the four points.

, include an ABCD pattern icon. This tool actually calculates how long each of the waves is in comparison to one another.

For example, in the chart above, an ABCD harmonic pattern emerges in September 2021. When we apply the TradingView drawing tool to the chart, it will automatically calculate C’s retracement of leg AB, and determine the extension of D as compared to leg AB.

ABCD chart patterns are versatile, and can be viewed on all financial instruments on all chart time frames where there’s a reasonable amount of liquidity.

There are two main strategies used when trading the ABCD pattern.

With three data points at hand (points A, B and C), we can calculate and estimate the target for point D and anticipate a price reversal.

If the pattern is a bullish ABCD pattern, then a trader can anticipate a bullish reversal and buy at point D. If the pattern is a bearish ABCD, then a trader may look to sell in anticipation of a bearish reversal.

Once the price reaches point D, look for other bullish indications, such as a 

 formation or resistance breaking. In the image above, the price falls, reaching the bearish trajectories of "D". Then, after a successful bullish retest of the price lows, Bitcoin rallies to break above resistance. A trader would look to make their buy entry point on this break and place their 

 below the low of "D". Generally, prices will retrace back to point C, so taking profits at "C" should provide a good risk-to-reward ratio.

If the larger overall trend is expected to continue, then sometimes traders will anticipate the price driving to point D and beyond.

For example, in a bearish ABCD trading pattern, the CD leg is a rally. Once the point C low forms, a trader may buy in anticipation of the price traveling to point D.

In the example above, "C" retraces between 50–61.8% of AB. When the price breaks above the green resistance trend line, a trader can buy and place a stop loss just below the low of point C. We can calculate the targets based on our rules above. The best target is when AB and CD are equal and we can anticipate the 100% extension, which will generally produce a good risk-to-reward ratio.

ABCD patterns have their advantages, as well as some limitations.

:The ABCD trading pattern provides traders with well-defined entry and exit levels, allowing for precise trade execution and risk management.

:The pattern is based on specific price levels and structures, making it relatively objective and rule-based. Traders can apply predefined criteria to identify and validate the pattern.

: After the completion of the pattern, it's common for prices to retrace back to point C. This provides traders with an excellent risk-to-reward ratio when trading the pattern.

: Like any chart pattern in technical analysis, this pattern isn’t foolproof, and can produce false signals. A trader must exercise caution, and incorporate a stop-loss order to protect their account’s capital.

: While the ABCD pattern has defined rules, there can still be subjectivity in identifying the exact points of A, B, C and D. Traders may interpret the pattern differently, leading to variations in trade setups.

: Many traders may face challenges when using the pattern, such as the temptation to chase the market or exit too early. It requires discipline and patience to execute trades according to the pattern's geometry.

The ABCD trading pattern serves as a valuable tool for traders seeking potential trading opportunities. With its clear structure and defined entry and exit points, this pattern offers a rule-based approach to trading. By understanding the pattern's measurements, recognizing its visual resemblance to a lightning bolt and exercising adequate risk management, traders may effectively incorporate it into their trading strategies.

ABCD Pattern: What Is It and How to Trade With It

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