Key Takeaways
- Binance Margin enables traders to borrow funds against their holdings and utilize leverage, enhancing capital efficiency.
- Supports leveraged long/short positions on spot markets, allowing profit in both bullish and bearish trends.
- Offers three products: Cross Margin, Isolated Margin, and Portfolio Margin.
Introduction
Margin trading allows traders to amplify positions using borrowed funds, increasing potential profits (and losses). It’s a high-risk, high-reward strategy suited for experienced traders.
What Is Binance Margin?
Binance Margin boosts capital efficiency by letting users borrow funds to trade digital assets with leverage. Key features include:
- Cross Margin: Shares collateral across all positions.
- Isolated Margin: Allocates separate collateral per position.
- Portfolio Margin: Advanced risk management for diversified portfolios.
Binance Margin Glossary
| Term | Definition |
|---|---|
| Margin Level | Total Asset Value / (Liabilities + Interest). Determines account health and liquidation risk. |
| Collateral Ratio | Discounted asset valuation tier based on holdings (Cross Margin only). |
| Interest | Hourly accrual on borrowed funds; rates adjust dynamically. |
| BNB Discount | 25% fee discount and 5% interest reduction when paying with BNB. |
| Liquidation | Automatic closure of positions when equity falls below threshold. |
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Cross Margin vs. Isolated Margin
| Feature | Cross Margin | Isolated Margin |
|---|---|---|
| Collateral | Shared across all positions | Isolated per position |
| Risk | Higher (shared liquidity) | Lower (controlled per trade) |
| Best For | Diversified portfolios | Precise risk management |
How to Use Binance Margin
Step 1: Enable Margin Trading
- Log in to Binance.
- Navigate to Trading > Margin.
- Complete the Margin Quiz.
Step 2: Borrow Funds
- Auto-borrow: Funds are borrowed automatically when placing orders.
- Manual borrow: Select assets and amounts under Margin Wallet > Borrow.
Step 3: Repay Loans
- Auto-repay: Proceeds from sales automatically repay debts.
- Manual repay: Select tokens and amounts under Margin Wallet > Repay.
👉 Master margin trading with these tips
Risk Management Tips
- Monitor Margin Level to avoid liquidation.
- Use Isolated Margin for high-risk assets.
- Enable Auto Top-up to prevent margin calls.
FAQ
1. What triggers a margin call?
When your Margin Level drops below the threshold (e.g., 1.5 for Cross Margin), you’ll receive a warning.
2. How does BNB discount work?
Hold BNB in your Margin Wallet to reduce fees by 25% and interest by 5%.
3. Can I disable borrowing temporarily?
Yes, use the Cooling-off Period feature (1 day to 1 week).
Conclusion
Binance Margin empowers traders with leverage and flexibility. Start with small positions, understand the risks, and use Cross/Isolated Margin strategically.
For more details, read Binance’s Margin Trading Guide.
Risk Warning: Trading with leverage involves significant risk. Only invest what you can afford to lose. See Binance’s Terms of Use and Risk Warning.