To repay your debt, click on the “Borrow/Repay” button and select the “Repay” tab. Click on “Positions” to check detailed information about your current positions. If you prefer to see the values in USDT, select “USDT https://iforexreviews.com/ Benchmark” on the right side. BlockchainReporter is a trusted name in the cryptocurrency and blockchain technology news space, keeping its readers abreast of the latest and most significant trends in the industry.

So if the market moves against Alice’s position, she will have bigger losses. The risk level changes according to the market movements, so if the prices move against your prediction, your assets can be liquidated. Note that in case you are liquidated, you https://iforexreviews.com/cross-margin-in-binance-what-is-it-and-how-does-it-work/ will be charged extra fees. Below “Balance Details”, click on “Margin” to begin the process of opening your margin trading account on Binance. You will need to have completed identity verification and make sure your country is not on the blacklist.

What is Binance margin liquidation?

The user interface of the platform has also been updated in order to make it easier for the consumers to utilize Bybit Wallet. We write product reviews and comparison articles in the field of cryptocurrency. If you use BNB to pay your trading fee, then you get a discount of 25%. Also use X8FX10NT referral code to get a discount on the fee. Enter all the details, like price, amount, etc., and click on the buy/ sell button accordingly.

• Isolated Margin places a restriction on the maximum amount of funds that can be used to margin trade, by limiting it to funds that are reserved for a particular trading position.
• Cross Margin Collateral Ratio] tab of the Margin Data page.
• However, margin trading can amplify both the gains and the losses.
• These cool features include Binance futures battle, Binance futures leaderboard, and an asset conversion function.

Going short as a leverage trading term is when you purchase a contract because you are convinced that the asset in question will appreciate. The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes. The two exchanges have continued to record astronomical growths as the number of new registrations continues to explode.

Why do I use Binance Margin?

Suppose you open a position of 30 USDT with a capital of 10 USDT. By using leverage, the exchange holds your 10 USDT as collateral and provides you with an additional 20 USDT to open the position. Maintenance margin is the minimum account balance to keep a trade open. If you incur losses and your credit goes below this level, then either you’ll have to add more funds or suffer liquidation. In cross-margin trading mode, the entire margin balance is shared across all open positions to prevent liquidations.

Binance Margin allows traders to choose between cross margin and isolated margin. The difference between the two modes is very important as they come with different opportunities and challenges. The Binance cryptocurrency exchange’s popularity is deeply rooted in its support for countless cryptocurrencies. There are currently more than 600 trading pairs available, most of which feature high liquidity and low slippage. To be frank, there is no single reason why I have chosen to use Binance Margin.

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This mode of margining allows you to manage your risk on a specific pair or position by choosing how much margin is allocated to it. This is quite helpful in worst-case scenarios as only the funds allocated to the position can be liquidated. On the top left, you see cross and isolated margin options. Before we get into the different types of margins, let’s briefly look back on what margin is. Let’s say Jack has $1000 of your own money as collateral for a leveraged position, this is what we refer to as margin. Hence it is the best place to store your digital assets online.

If you are in doubt, we highly encourage you to contact a tax professional in your country for advice. If the price of BNB goes up as Alice expected, she can sell her assets and repay the borrowed BTC along with the corresponding interest. You can view all the assets’ margin data in isolated and cross-margin trading by clicking on the three vertical dots on the screen. Binance is the world’s largest crypto trading platform in terms of volume.