Crypto Trading Binance Futures 2

Question 1

In Binance USDⓈ-M Futures, what does the 'Margin Ratio' represent?

Accepted Answer

Maintenance margin divided by margin balance

Answer

Margin Ratio equals maintenance margin divided by margin balance, and liquidation is triggered when it reaches 100%.

Question 2

What is the key difference between Cross Margin and Isolated Margin modes?

Accepted Answer

Cross shares the whole balance across positions while Isolated limits margin to one position

Answer

Cross Margin uses the entire futures wallet balance to avoid liquidation, while Isolated Margin caps risk to the margin assigned to that single position.

Question 3

On Binance Futures, what does a positive funding rate mean for an open position?

Accepted Answer

Longs pay shorts

Answer

A positive funding rate means long position holders pay short position holders.

Question 4

What is the maximum leverage typically available on major Binance USDⓈ-M perpetual contracts like BTCUSDT for new accounts?

Accepted Answer

125x but reduced by tiered limits

Answer

Binance advertises up to 125x on flagship pairs, though leverage is capped lower as position size grows and for newer accounts.

Question 5

What is the purpose of the 'Mark Price' on Binance Futures?

Accepted Answer

To calculate unrealized PnL and prevent unfair liquidations

Answer

Mark Price is based on an index of spot prices and is used for liquidations and unrealized PnL to avoid manipulation from temporary last-price spikes.

Crypto Trading Practice Test

Crypto Trading Practice Test

Crypto Trading Binance Futures 2