Bybit: Cryptocurrency Can the Delta Neutral Strategy Win?


At Bybit, there are traders who operate using a delta-neutral strategy. The delta-neutral strategy using virtual currency futures has the characteristic that the risk is extremely low, and it is suitable for those who want to trade stably because there is little risk of big loss.

What is Delta Neutral?

Delta neutral means that the physical stock is first held by the trader. This is a method of short settlement of the same amount of inverse perpetual futures contracts. Earning money with Delta Neutral is related to the “funding rate”. The strategy is to make a settlement by aiming for the timing when the short position increases. However, be aware that there may be negative consequences. This method is used not only for virtual currencies but also for FX and stocks, but if the timing is wrong, it may fail if operated with automatic trading or BOT.

What is perpetual contract

A perpetual futures contract is a trade in which a position can be closed out at any time. This contract is highly recommended for those who are good at short-term trading. However, in the case of delta neutral, not only this order but also leverage and funding rate are involved. We fight using the same logic as forex and stocks.

What is Funding Rate

Bybit charges a fee called Funding Rate once every 8 hours. The funding rate occurs at 1:00 am, 9:00 am, and even 5:00 pm Japan time, and if you hold a position during this time, you will be charged a fee. As a past trend in the cryptocurrency market, the perpetual futures price has remained higher than the spot price, making it easier for short position holders to receive interest.

Why delta neutral works

The funding rate is often positive in most cases, so if you receive the funding rate throughout the year, an annual interest rate of 30% or more is possible. There are times when it is negative, but if you look at it in total, it tends to be positive. That’s why most of the cases end in positives.

When to make money with Delta Neutral

In order to make money with Delta Neutral, the cryptocurrency you are trading must have a high value and continue in an uptrend. During an uptrend, many people hold long positions, so if you hold a short position, you can receive interest income from the funding rate without any risk. And this is the most important factor, the funding rate increases as the position ratio increases. The interest rate you can receive will increase.

Notes on Delta Neutral

Delta Neutral has the following advantages and disadvantages, so I will summarize the information below. Let’s check and decide whether to deposit funds, considering the funding rate (funding rate) and leverage comprehensively. Since it is an investment, there may be failures, but if you can automate it well, you can more than double your funds. Operating the management screen is easy compared to other companies, and you can quickly learn how to sell or buy. Once you get used to it, you can earn money almost every day.

profit with less risk

In the case of delta neutral, you hold a short position at the same time, so you tend not to be exposed to the risk of price fluctuations. Furthermore, it is possible to challenge even with a small investment, so even beginners can make a profit by trading even with a small amount, so it is recommended even for beginners.

No trading technique required

General trading requires techniques in trading. Since Delta Neutral only holds positions, it is possible to try it without any experience or skills in trading. Beginners just starting out can have a hard time winning, but if you’re delta neutral, you can potentially make a profit.


In the case of delta neutral, the reproducibility tends to be slightly higher because the system allows you to earn profits just by holding the position. However, on the other hand, there is no guarantee that you will always make a profit. Investments are made at your own risk.

Fluctuation risk

Virtual currencies are subject to constant price fluctuations. When the virtual currency market drops significantly, there is an extremely high possibility that the funding rate will become negative. In that case, you will of course end up cutting your losses rather than increasing profits, so you need to be careful as this does not mean there is no risk.

loss cut

Due to the above, if you fall into a state of insufficient margin, there will be a risk of loss cut. Since the leverage is 1x, the possibility of running out of margin is low. However, it is a possibility and should be considered.

How to start delta neutral

Follow the steps below to get started with Delta Neutral. Bybit is a highly reputable exchange that ranks high in popularity rankings among overseas virtual currency exchanges such as Binance and MEXC. There are many coins, including Bitcoin, and a wide variety of order formats and categories. Of course, there are many campaigns and bonuses overall, so it is a very good exchange for beginners. You can trade BTC, USDT, XRP, etc.

account opening

First, open an account on Bybit’s official website. For details, you can use the images and refer to the article below to learn about account opening and procedures. It is one of the safest exchanges in the world as it uses zero cut even if there is a loss. If you can win, you can increase it as much as you want. It has a good reputation and word of mouth on media and SNS such as X (twitter), and it is possible to trade with low risk. There are also plenty of campaigns and bonuses available.

spot trading

Once you have opened an account, adjust the specific quantity with market or limit price, specify the order, and hold either physical currency of each virtual currency. For spot trading, select “Spot Trading” from “Spot” in the top menu. Get help if you have any questions.

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Owned in an inverse perpetual futures contract

This time, let’s hold a short position by specifying a certain amount using an inverse perpetual futures contract. Please ensure that the amount of your short position is equal to your actual amount. Click on “Inverse Contract” from “Derivatives” in the top menu and have a trading symbol. You can make a profit depending on the funding rate.

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Notes on Delta Neutral

If things go well, you will be able to automate this and receive rewards based on the funding rate three times a day, which will more than double your funds. However, this is just an ideal theory. In reality, just like in FX, you may fail and end up with a negative result, so be careful. Delta neutrals cannot receive profits unless the funding rate is positive. When the virtual currency market drops significantly, the funding rate will become negative, so be prepared to cut your losses. If you hold on to it and hold on to it, you may end up losing a lot of money, so be sure to check before doing so.


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