Learn to use scaled orders for efficient derivatives trading on Bybit. Discover how this powerful tool helps manage large trades with minimal market impact.

In trading, derivatives are financial instruments that derive their value from underlying assets, such as cryptocurrencies, allowing traders to profit from price movements without direct ownership. Scaled orders, a popular tool among derivatives traders, break large trades into smaller orders across a price range, providing enhanced execution control and reduced market impact. This article explores how Bybit scaled orders work, their strategic advantages and how to use them effectively.

 are a trading strategy that divides a large order into multiple smaller orders, placed across a specified price range. This approach allows traders to enter or exit positions gradually in order to gain better control over trade execution and minimize impact on market prices.

Commonly used in derivatives trading, scaled orders help manage large trades with precision. This makes them popular among traders who want diversified entry or exit points.

Bybit’s platform offers detailed tools for setting up scaled orders, which allows traders to customize each aspect of their strategies.

Bybit offers several order types to meet diverse trading needs.

The different order types described above allow traders to choose a method that aligns with their trading strategies and goals.

Scaled orders divide a large trade into smaller, incremental orders placed at various price levels within a specified range. This approach allows traders to execute large trades with less impact on the market price. Below, we illustrate how it works, using the Bybit platform interface as an example.

In the screenshot above, a trader sets up a scaled sell order on the 

 Perpetual contract. The parameters are as follows:

The benefits of using scaled orders are as follows.

Using scaled orders allows traders to sell (or buy) gradually over a defined range, making it easier to handle larger orders while minimizing their effect on the overall market.

Advanced Trading Strategies Using Scaled Orders

Scaled orders can be paired with other strategies on Bybit to create a robust trading approach. By using the example setup above for BTCUSDT, additional strategies can enhance control and profitability.

Combining these strategies with scaled orders provides consistent control, ensuring efficient trade execution even in volatile markets.

To execute a scaled order on Bybit, follow the steps below.

 for an account if you don’t have one) and go to the derivatives trading page.

: Choose the asset you want to trade, such as BTCUSDT.

: Define key settings, including the price range (e.g., $75,000–$85,000), total quantity and the number of orders (e.g., five orders of 0.2 BTC each). Adjust distribution options (such as 

: Confirm all details, then submit the scaled order. Bybit will automatically place limit orders across the specified price range.

: Use Bybit’s order management tools to track and adjust active orders under the 

 is essential when using scaled orders. Position sizing helps limit exposure by ensuring trades align with your 

. Bybit’s platform includes tools to manage both position size and risk, supporting traders in setting realistic order sizes relative to account balance and market conditions.

Bybit’s scaled orders enable precise large-volume trades that minimize market impact, offering traders enhanced control, diversified entry points and steady execution. Explore Bybit’s advanced trading tools to optimize your derivatives trading strategy. 

 for a risk-free start to help build effective habits before diving into live markets. 

 today and explore flexible futures contracts.

Intermediate

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How to Use Scaled Orders to Trade Derivatives on Bybit

bitSmiley (SMILE) is a BTCFi platform that offers multichain stablecoin minting and lending functions, backed by BTC collateral.

The Bitcoin (BTC) blockchain started as a network devoid of smart contract functionality, but has managed to develop some form of 

 (DApp) ecosystem over the past few years — thanks to 

 (STX), Merlin Chain and Rootstock (RSK). Native Bitcoin protocols and new token standards — 

 upgrade have also contributed to the development of (modest) smart contract–like functions on the chain. Thanks to these innovations, an entirely new field, 

Unfortunately, the BTCFi niche remains underdeveloped compared to the thriving DeFi ecosystem of 

 chains. One key reason for this deficit is the lack of sophisticated DeFi functionality within the Bitcoin ecosystem, with few protocols capable of offering full-fledged lending, borrowing and yield management services. 

Another problem is the limited liquidity due to traders' inertia — having invested their time and funds in Ethereum and other smart blockchains, many DeFi users are unwilling to explore Bitcoin-based opportunities.

bitSmiley (SMILE) is a BTCFi project that aims to expand BTC-backed stablecoin and lending functions to various platforms beyond Bitcoin. Users of the platform can take advantage of BTC-collateralized stablecoin minting and lending services, with the issued assets usable on a wide variety of DeFi apps across many chains, including Ethereum. By offering these services, bitSmiley hopes to expand the usability of BTC funds well beyond Bitcoin's still immature DeFi environment.

 (SMILE) is a DeFi platform specializing in multichain 

 minting and lending services backed by Bitcoin. 

Its users can provide BTC funds as collateral to mint the bitUSD stablecoin, an asset soft-pegged to the U.S. dollar. bitUSD can be further used across a variety of DeFi protocols (on Ethereum and other smart contract chains) to earn yields, similar to the way that native Ethereum stablecoins are leveraged within DeFi. The protocol also offers cross-chain lending services, whereby users can lend funds in bitUSD and other stablecoin assets, based on the bitRC-20 standard, in exchange for collateral in BTC.

The bitRC-20 standard was developed by the bitSmiley project team to enable the issuance of native Bitcoin stablecoins, which can be further utilized within other platforms' DeFi ecosystems. bitRC-20 leverages Bitcoin's 

 technology to power the issuance and management of stablecoins.

Additionally, the bitSmiley protocol has added the function to mint and lend bitUSD — and possibly other bitRC-20 stablecoins in the future — using a variety of Bitcoin-based 

 tokens (LstBTCs). This lets users earn yields from staking platforms while using the underlying funds to mint and lend bitUSD.

In addition to stablecoin minting and lending services, bitSmiley has also developed a crypto derivatives trading protocol, although this service still appears to be in development as of early November 2024.

bitSmiley launched its operations in May 2024 on two popular 

. Then, in September, the project announced a key partnership with the 

 (ZETA) omnichain protocol, which may help optimize the cross-chain accessibility of assets originally issued on bitSmiley. ZetaChain’s protocol maintains smart contracts for cross-chain communications on multiple blockchain platforms within the Bitcoin, Ethereum and 

The bitSmiley project was founded in 2023, and is backed by two main venture capital investors — OKX Ventures and ABCDE — as well as a number of other prominent investors and backers, including KuCoin Ventures, MH Ventures, Skyland Ventures, Cypher Capital and CMS Holdings.

How Does bitSmiley Unlock Native Bitcoin Liquidity?

While users can keep their bitUSD funds working for them within the BTCFi ecosystem, there's one key problem: the native BTC DeFi world lacks the levels of liquidity, trading activity and product sophistication that Ethereum and other smart contract blockchains can offer. This makes the use of bitUSD beyond the Bitcoin ecosystem particularly relevant for traders.

Thanks to bitSmiley's cross-chain capabilities, bitUSD can be transferred to Ethereum and other major smart contract chain ecosystems to be used in DeFi protocols in those environments. This dramatically expands product alternatives, as well as the number of protocols on which bitUSD may be utilized.

bitSmiley uses Bitcoin's native inscription technology, multisig wallets and a group of listener components to enable the transfer of bitUSD to other blockchains. bitUSD is natively issued on Bitcoin as an inscription, and sent to a multisig wallet. A group of listeners configured by the platform detects the transfer to the wallet, checks the transaction and sends the information to the General Message Bridge, which is then responsible for minting bitUSD on the respective external chains.

bitSmiley's flagship service is bitUSD stablecoin minting. Users can mint the asset, which is native to Bitcoin and uses the bitRC-20 standard developed by the project, by providing collateral in BTC into the bitSmiley Treasury. bitSmiley implements overcollateralization to ensure the platform's financial security and stability. If the value of the collateral falls below a certain threshold, it becomes a target for a 

 process. The liquidated party also incurs a charge as a liquidation penalty.

The liquidated collateral is put up for an auction. bitSmiley uses the Dutch auction model, whereby the price starts at a higher level and then gradually decreases until a willing party decides to buy the collateral funds.

The money earned by the auction is stored in a surplus account, of which 10% goes to operational expenses and 90% is set aside as a liquidation buffer (used as compensation during times when the auction revenue is insufficient to pay for the expenses of the treasury). Additionally, if the money in the surplus account is insufficient to cover bad debts, the platform will then conduct a debt auction using future income as collateral. The debt auction will follow the English auction model (featuring a set opening price, which is raised until only a single bidder remains), and participants are required to bid using BTC.

When bitUSD is issued to a user, they have the option to transfer the asset to other blockchain environments using the bridging procedure described above. With a soft peg to the U.S. dollar, bitUSD can provide utility to DeFi traders across various smart contract chains in a way similar to popular stablecoin, such as 

bitSmiley's lending component, bitLending, is designed to enable 

 (P2P) lending of bitUSD — and, in the future, other assets based on the bitRC-20 standard — in exchange for collateral in BTC and LstBTC liquid staking tokens. bitLending relies on the standard Bitcoin opcodes (pieces of code attached to every Bitcoin transaction with instructions for processing it) to enable the P2P lending exchanges.

Users willing to lend their bitUSD post on bitLending, announcing the amount offered and interest rate sought. If there's a willing borrower for the offer, the parties initiate a transaction, with the borrower providing an overcollateralized security in BTC or LstBTC. The collateral needs to be approved by bitLending. When the borrower has successfully repaid the loan, their collateral will be released. If the borrower fails to repay by the deadline, the collateral is transferred to the lender.

, launched on the Ethereum blockchain on Nov 6, 2024. The token uses Ethereum's 

 standard. The decision to launch the token on Ethereum rather than Bitcoin was mainly driven by the former chain's much more sophisticated smart contract functionality, as well as popularity among DeFi users.

SMILE entitles its holders to participate in the decision-making process on key aspects of the bitSmiley protocol, such as minimum collateral rates, liquidation thresholds and rules, collateral types and more. The token also provides additional benefits and perks for its holders, including fee discounts and exclusive access to discounted auctions. The project team has also announced that SMILE may be used for staking on 

 — a platform that will host a series of DeFi apps focused on bitUSD.

SMILE has a total and maximum supply of 210 million. Of these, one percent (2.1 million SMILE) is reserved for eligible users who earned points during the Pre-season airdrop campaign in May 2024.

The SMILE token is available on Bybit's Spot market as a 

 (dedicated to the token) for the chance to earn a share of the 800,000 SMILE prize pool. Under the terms of the campaign, new users need to deposit at least 200 SMILE — or deposit at least 100 USDT and trade 100 USDT worth of SMILE on their first Spot trade — to qualify for a share of 400,000 free SMILE tokens. Any user can also trade at least 500 USDT worth of SMILE on the Spot market to earn their share of the 400,000 SMILE prize pool. The campaign is valid through Nov 19, 2024, 8:59PM UTC.

Bitcoin's DeFi niche has been growing strongly over the last few years, but many projects dedicated to this area stay within the confines of the still young BTCFi ecosystem. The bitSmiley platform has taken a different approach — instead of trying to rely on the still limited liquidity of Bitcoin, the project's bitUSD crypto serves as a bridge to larger DeFi ecosystems such as Ethereum. 

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bitSmiley (SMILE): Bringing Liquidity to Bitcoin DeFi

President-elect Donald Trump plans to appoint pro-crypto candidates to key financial agencies, aiming to create a more crypto-friendly regulatory environment and fulfill his promise to make the U.S. the "crypto capital of the planet."

The S&P 500 rose 0.1% to a record high, fueled by optimism around potential Trump policy changes. Coindesk Indices, an index measuring broader cryptocurrency market performance was up by 6.87%, with Bitcoin and Ether rising by 10.27% and 4.80%, respectively in the past 24 hours.

Today's top performer is ENA, which surged 8.2% following Pendle's partnership with Ethena Labs for Boros v3, revolutionizing yield trading with margin and funding rate efficiency.

Ethena Labs (ENA), founded in 2023, introduces USDe, a synthetic dollar on Ethereum, offering a decentralized alternative to traditional stablecoins. It features the 'Internet Bond' for global savings, using delta-hedging to manage volatility and aiming to transform the financial ecosystem by enhancing Ethereum's utility. 

, a platform for yield trading with margin and efficient funding rate management. It allows traders to hedge risks and speculate on funding rate fluctuations. There are no new tokens, with PENDLE and vePENDLE central to the ecosystem. Updates include an airdrop for vePENDLE holders and fee optimizations to boost sustainability and adoption.

Check Out the Latest Prices, Charts, and Data of 

, aiming to create a more crypto-friendly regulatory environment and fulfill his promise to make the U.S. the "crypto capital of the planet." This shift has sparked a surge in cryptocurrency prices, with Bitcoin hitting a new all-time high of $89,560 and Ethereum rising nearly 40%. Trump's victory and the prospect of pro-crypto leadership have also boosted the U.S. stock market, signaling potential further market growth once he takes office in January 2025.

Yesterday, the total BTC spot ETF flow is $357.6 million, with $24.2 million in GBTC and $333.4 million in non-GBTC assets.

 that users can convert ORA Points into ORA tokens, with tokens vesting linearly over a year from the token generation event (TGE). Full access to tokens will be available one year post-TGE.

Beginner

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Trump's Pro-Crypto Appointments Spark Surge in Bitcoin and Market Optimism

Grass is a platform that provides internet bandwidth. It aims to democratize and decentralize internet resources through fair compensation. Learn more here.

The convergence of artificial intelligence and 

 has sparked a wave of innovative solutions in the crypto space. Among these emerging projects, 

 stands out by transforming idle internet bandwidth into a valuable resource for AI development while compensating users with rewards.

In this article, we'll dive into how Grass works, from its advanced data processing infrastructure to its user-friendly node operation system. We'll explore its tokenomics and key features, analyze its market potential and examine the project's road map as it bridges the gap between everyday internet users and AI development.

Grass is a platform that aims to democratize and decentralize internet resources through fair compensation. Its network converts unused internet bandwidth into valuable AI training data, rewarding contributors with GRASS tokens while building an open-source, accessible knowledge base.

Grass was co-founded by Andrej Radonjic, who serves as its CEO. With a background in software engineering, and experience from his previous venture, 1on1proxy, Radonjic leads the development at Wynd Labs alongside CTO Chris Nguyen. The project emerged from the growing need for accessible, high-quality data to train AI models. With the 

 and AI development costs continuing to rise, Grass was conceived to democratize data collection while creating value for everyday internet users.

Since its launch, Grass has experienced remarkable growth, expanding to 190 countries and collecting over 1 TB of data daily through its network of more than 2 million users. Such rapid adoption demonstrates strong market demand for decentralized AI data collection solutions that benefit all participants, not just large corporations.

Grass's mission to create a more accessible and equitable AI ecosystem centers on the following key objectives:

Through these objectives, Grass is building an ecosystem where AI developers gain access to quality training data, everyday internet users earn rewards for their contributions and the broader AI industry benefits from more accessible and ethical data collection practices.

Grass operates as a decentralized network that allows users, known as node operators, to contribute their unused internet bandwidth for web scraping and AI data processing. The operation relies on several key components:

This entire process operates seamlessly utilizing a sovereign rollup mechanism for efficient data processing, collection and verification, while maintaining high security and scalability standards.

Grass offers several features designed to enhance the user experience and reward participation in its network.

The Grass dashboard provides users a comprehensive view of their activity, including bandwidth contributions, earned Grass Points, referral statistics and 

 eligibility. The intuitive interface allows node operators to easily connect and disconnect their bandwidth contribution while maintaining complete visibility of their network participation.

Grass incentivizes network growth with a multi-tiered referral program. Users can earn commissions based on their referrals’ activity, structured as follows:

Grass’s platform implements a comprehensive rewards system centered on network participation. Users earn Grass Points by contributing their unused internet bandwidth and operating nodes, with earnings based on uptime and data processing.

These points can be converted into GRASS tokens during the token generation event. Future opportunities for token 

 and governance participation in the ecosystem are rumored.

Grass has made significant strides since its inception, with a clear road map outlining future milestones, as follows:

The GRASS token will play a central role in the Grass ecosystem, serving various purposes that drive network participation and growth:

While the GRASS token hasn’t officially launched, current trading data from Bybit Pre-Market Perpetuals provides insight into its market valuation. GRASS has demonstrated price movement between $0.88 and $1.20, with a current price of $1.09 as of the time of this publication (October 2024).

The community itself draws comparisons to 

 (WLD), which has a current fully diluted value (FDV) of $16 billion. With Grass's total supply of 1 billion tokens, matching WorldCoin's FDV would put GRASS at $16 per token. However, such comparisons should be viewed cautiously, as each project has unique characteristics and market conditions.

Looking to trade GRASS tokens? Bybit now offers the GRASS/USDT Spot trading pair and GRASSUSDT Perpetual contract. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

When evaluating GRASS as a potential investment, several key factors deserve consideration:

While GRASS shows promising fundamentals and meets a significant market need, potential investors should 

 when evaluating GRASS as an investment opportunity.

Grass stands out as an innovative solution that democratizes AI development by transforming unused internet bandwidth into valuable training data. With over 2 million users during its beta, strong backing from prominent investors and a clear vision for making AI development more accessible, Grass demonstrates significant potential for reshaping the multibillion-dollar AI data market.

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Grass (GRASS): Putting Idle Bandwidth to Work for AI Development

Bybit 360

Options

Derivatives

Derivatives trading data shows that traders can expect the rally of ETH to pause here before another attempt to break higher.

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 over the weekend and gained about 2% on the back of thin liquidity. While speculators may be betting on a price breakthrough for ETH, derivatives trading data shows that traders can expect the rally of the second-largest market cap crypto to pause here before another attempt to break higher. This article will dive into the trading data of ETH derivatives on Bybit, and provide some trade ideas for 

Open Interest in ETH Derivatives at High Levels

ETH has received much attention, as the weekend rally may have caught some traders by surprise. Derivatives traders have been showing interest in betting the price movement of ETH with 

 contracts even before the weekend rally. Data from Bybit shows that 

Figure 1: ETHUSDT Perpetual open interest on Bybit. Source: Bybit

Figure 2: ETH options open interest on Bybit. Source: Bybit

, open interest is an important indicator because it tracks the number of active market participants and, to some extent, reflects the level of willingness of these professional traders to make trades at a specific time.

Despite traders' increasing interest in speculating on the price of ETH, the perpetual long/short ratio may indicate a rather neutral stance with a downside bias. 

When we look at the past performance of the ETHUSDT perpetual daily long/short ratio, especially in early October and mid-October 2024 (highlighted in Figure 3 below), there were two clear spikes in the long/short ratio during the highlighted periods, indicating a higher percentage of long accounts over short accounts.

Figure 3: ETHUSDT perpetual daily long/short ratio on Bybit. Source: Bybit

Now, look at the price of the ETHUSDT Perpetual contract on Bybit (shown in Figure 4 below). When the long/short ratio shows a confirmed uptrend, the price seems to follow suit shortly after. However, the recent daily long/short ratio has been relatively flat and has yet to produce any trends. This may indicate that the upside momentum has been slowing down, and the rally may need a break.

Figure 4: ETHUSDT Perpetual daily chart. Sources: Bybit; TradingView

Technical indicators also support this assumption. After the price hits the upper band of the 

, which technicians consider an overbought signal, the daily 

 line has been moving toward the signal line and potentially moving under it (highlighted in the circle), which also suggests the rally may need a break.

Although there may be a short-term downside bias from the perpetuals data and the technical perspective, some of the options trading data may be able to give a different view. Data from Bybit shows that most ETH options traders have a month-end setup, with most open interest focused on contracts with an October 25, 2024 expiration. Among calls, most of the open interest has focused on the $2,800 strike, and the $2,000 strike has been the most popular among puts.

Figure 5: ETH options open interest by expiration on Bybit. Source: Bybit

Figure 6: ETH call options open interest by strike on Bybit. Source: Bybit

Figure 7: ETH put options open interest by strike on Bybit. Source: Bybit

At the time of this writing (Oct 23, 2024), ETH has been changing hands at around $2,500. When looking at the ETHUSDT daily chart, it’s hard not to notice that $2,800 has been the recent resistance level for ETH. Given that the U.S. elections are less than two weeks away and momentum seems to remain strong in equity, the possibility of a breakout from that resistance level can’t be completely ruled out.

Besides, the max pain of ETH options may also support the case of a short-term correction, rather than a trend reversal. Data from CoinGlass shows that the October 25, 2024 max pain for ETH options remains at $2,600. 

Figure 8: Max pain for ETH options. Source: CoinGlass

In options trading, “max pain” refers to a specific strike price at which most options contract holders (calls and puts) would have the most significant financial loss when the contract expires. It’s the point where option owners (buyers) feel the most pain, while option sellers enjoy the maximum profit. In the traditional finance (TradFi) world, max pain has been an essential piece of information for options traders to adjust their positions and strategy strategically. The same theory also applies to crypto options trading.

The max pain theory suggests that the price of the underlying asset, ETH in this case, has a tendency to move toward the max pain point when options contracts expire. A $2,600 max pain point for ETH is slightly higher than its current price. In other words, derivatives traders seem to expect a capped downside risk for ETH at the current level, while there could be a chance to retest the recent resistance.

Derivatives trading, especially options, can be highly sophisticated and involve complicated strategies. By studying different derivatives trading data, market participants may be able to get a glimpse of what professional traders are thinking about. However, each piece of data provides only one piece of information. Seeing the bigger picture often requires assessing other data in parallel. 

: Investing in cryptocurrencies and their derivatives involves substantial risk of loss, and isn’t suitable for every investor. This article provides facts for educational purposes only, and does not represent any financial advice. Prior to making any investment decisions, please ensure you fully understand the risks involved and seek independent advice if necessary. Our customer support team is available to assist you with any inquiries.

Learn From Smart Money: ETH’s Rally May Need a Break, but Upside Risk Remains Intact

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