Binance Margin Test: Crypto Trading

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?

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.

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.

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

Correct! Wrong!

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

How much money you have in your margin account

Your level of VIP

The system's maximum borrowing

Your personal borrowing cap

The duration of the loan

Correct! Wrong!

Which of the following circumstances will make you liquidate?

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

Debt total is less than interest total.

The margin level has gotten to the point of liquidation.

Correct! Wrong!

How frequently is margin interest determined?

Daily

Monthly

Hourly, at the time of borrowing

Correct! Wrong!

How often is the interest on the margin calculated?

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

Margin level = total borrowed value/total accrued interest value

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

Correct! Wrong!

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?

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

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

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

All of the above

Correct! Wrong!

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

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

Ignore

Take out more loans to reduce your risk.

Correct! Wrong!

Crypto Trading Binance Margin Test

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

Which of the following circumstances will make you liquidate?

How frequently is margin interest determined?

How often is the interest on the margin calculated?

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?

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

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