Introduction to Stock CFDs on Bybit MT5
Bybit's MT5 Gold & FX platform now offers US stock Contracts for Difference (CFDs), enabling traders to speculate on 78 major US-listed companies across tech, finance, and consumer sectors. These CFDs provide up to 5x leverage (fixed per asset) without actual stock ownership.
Key Features:
- Two-way trading: Profit from both rising and falling markets
- Dividend adjustments: Cash dividends credited/debited based on position direction
- No stock ownership: Excludes voting rights or stock dividend entitlements
Account Setup & Configuration
Simplified Onboarding Process:
- Access "Gold & Forex" section on Bybit web/mobile
- Instant MT5 account creation with auto-generated credentials
- Seamless USDT transfers between main wallet and MT5
📌 Requirements: KYC Level 2 or corporate verification for compliance
Critical Risk Factors
1. Leverage Dynamics
- 5x maximum leverage amplifies both gains/losses
- Forced liquidation at 50% margin level using live market prices
2. Execution Transparency
- ECN-like spread structure with raw market pricing
- Undisclosed liquidity providers may affect extreme market execution
3. Regulatory Limitations
- Restricted in US/Japan and other jurisdictions
- Service provided by Infra Capital Limited (Mauritius SEC-2.1B license)
Cost Structure Analysis
Fee Breakdown:
| Component | Rate |
|---|---|
| Opening Commission | $0.04/share (min $5) |
| Closing Fee | Free |
| Overnight Swap | Daily UTC+3 00:00 |
💡 Comparative Advantage: Lower minimums ($5 vs competitors' $10-$15) benefit small-volume traders
Platform Limitations
Current Constraints:
- No cross-border regulatory coverage
- Limited corporate action handling (no stock dividend adjustments)
- Chart displays only Bid prices vs Ask execution
Future Roadmap
Upcoming Developments:
- Native platform integration (phasing out MT5 client)
- European/Asian licensing expansion
- Extended derivatives product lines
FAQs
Q: Can I use leverage higher than 5x?
A: No, leverage multiples are fixed per asset and cannot be manually adjusted.
Q: How are dividends handled?
A: Only cash dividends are adjusted - longs receive payment while shorts pay equivalent amount.
Q: Is this service available worldwide?
A: No, CFDs are restricted in several jurisdictions including the US. Check local regulations before trading.
Q: What's the minimum trade size?
A: $5 equivalent per transaction, making it accessible for smaller investors.
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Note: All trading involves risk. This content is educational only and not investment advice.