Crypto Trading Binance Margin Test

Question 1

Which of the following doesn't have an impact on your borrowing limit?

Accepted Answer

The duration of the loan

Answer

How much money you have in your margin account

Answer

Your level of VIP

Answer

The system's maximum borrowing

Answer

Your personal borrowing cap

Question 2

How frequently is margin interest determined?

Accepted Answer

Hourly, at the time of borrowing

Answer

Daily

Answer

Monthly

Question 3

How often is the interest on the margin calculated?

Accepted Answer

Margin level = total assets value/(total borrowed value + total accrued interest value)

Answer

Margin level = total assets value/(total borrowed value - total accrued interest value)

Answer

Margin level = total borrowed value/total accrued interest value

Question 4

Which of the following circumstances will make you liquidate?

Accepted Answer

The margin level has gotten to the point of liquidation.

Answer

The starting margin level has been attained by the current margin level.

Answer

Debt total is less than interest total.

Question 5

When your margin wallet's liquidation risk ratio (total assets/total debts) is reached. Which of the following options best sums up what will occur?

Accepted Answer

All of the above

Answer

You won't be able to trade with your margin wallet while it is being liquidated.

Answer

To pay off your debts, the system will automatically sell your assets.

Answer

Depending on how many assets are being liquidated, you will be charged a clearance fee for the liquidation.

Question 6

What should you do if you receive a margin call notification?

Accepted Answer

Reduce your debt repayment obligation or increase the amount of collateral in the margin account.

Answer

Ignore

Answer

Take out more loans to reduce your risk.

Question 7

When trading on Marginn, a forced liquidation takes place when the liquidation risk ratio is reached by the margin risk ratio (total assets minus total debts). In the event of a forced liquidation, users are assessed a "Liquidation Clearance Fee." Which of the above statements best describes liquidation clearance fees?

Accepted Answer

A Liquidation Clearance Fee will be assessed based on the value of the assets being liquidated when the position is forcibly liquidated. The system may complete the liquidation by using all of the assets still present in the margin wallet.

Answer

The user will only be required to pay commission fees for liquidation orders when a position is forcedly liquidated; no additional "Liquidation Clearance Fees" are due.

Answer

For each liquidation, a predetermined amount is charged as the Liquidation Clearance Fee.