Crypto Trading Binance Margin 2

Question 1

What does the margin level indicator measure on Binance Margin?

Accepted Answer

The ratio of total assets to total borrowed plus interest

Answer

Margin level equals total asset value divided by total borrowed plus accrued interest.

Question 2

At what margin level does Binance typically trigger liquidation on cross margin?

Accepted Answer

1.1

Answer

Liquidation is triggered when the margin level falls to 1.1.

Question 3

What is the key difference between cross margin and isolated margin?

Accepted Answer

Cross shares the whole account balance as collateral; isolated confines risk to one pair

Answer

Cross margin pools the entire margin balance, while isolated margin restricts collateral and risk to a single trading pair.

Question 4

When you borrow assets on Binance Margin, how is interest generally charged?

Accepted Answer

Hourly based on the borrowed amount

Answer

Margin interest accrues hourly on the outstanding borrowed amount.

Question 5

What action lets a trader profit from a falling asset price on Binance Margin?

Accepted Answer

Short selling by borrowing and selling the asset

Answer

Borrowing an asset, selling it, and buying it back cheaper allows profit on a price decline.

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