Binance Margin offers automated functions including Auto-Transfer, Auto-Borrow, Auto-Repay and Close Position to make trading smoother and more efficient. Here’s how these features can help you.
Automated functions available on Binance Margin
Click to learn about each function below:
Auto-Transfer
This feature allows you to place orders using the funds in your Spot Wallet as collateral. When your Margin Wallet balance is insufficient, Binance Margin will automatically transfer the required amount of assets from your Spot Wallet to your Cross Margin Wallet to cover the trade. Auto-Transfer is enabled by default for all Margin users.
Once you’ve activated the Cross Margin Transfer mode, a token’s available balance displayed on the Cross Margin trading interface will include the available balance in your Spot Wallet. Consequently, the maximum borrowable amount will be calculated based on the updated available balance.
Please refer to What Is the Cross Margin Auto-Transfer Mode? and What Is the Isolated Margin Auto-Transfer Mode? for more details.
Auto-Borrow
Auto-Borrow allows you to place buy/sell orders by automatically borrowing crypto assets in line with your maximum leverage.
On the margin trading page, select [Borrow] to place an Auto-Borrow order when placing a buy order. If the amount needed for the order exceeds your available balance, Binance Margin will automatically borrow on your behalf to execute the order. Successfully placed orders will accrue interest immediately.
Learn more at How to Use the Auto Borrow and Auto Repay Functions.
Auto-Repay
Auto-Repay takes the received funds from your completed trades and automatically pays down your borrowed amount. You will need to repay the same asset you borrowed (e.g., borrowed BTC, repay in BTC) and any outstanding interest will be repaid first before repaying the borrowed amounts.
To place an Auto Repay order, select [Repay] before completing a trade. The system will use your available balance to repay as much debt as possible.
Learn more at How to Use the Auto Borrow and Auto Repay Functions?
Close Position
The ‘Close Position’ function automatically repays debt for a single position and sells any remaining assets into your chosen settlement token using market orders.
Scroll down to the [Positions] tab at the margin trading page. Click [Close Position] next to the position you’d like to close.
Example of using automated functions in Margin trading
Assume the market price of BTC/USDC is 50,000. You have no USDC in your Margin Wallet but you have 30,000 USDC in your Spot Wallet.
- Steps 1 & 2: You place a buy order for 1BTC using the Auto-Borrow feature. If Auto-Transfer is on, Binance Margin will automatically transfer the 30,000 USDC from your Spot Wallet to your Margin Wallet. Binance Margin will also automatically borrow 20,000 USDC to ensure you have enough to complete the order.
- Step 3: Assuming the price of BTC/USDC goes up to 60,000, and you want to sell the asset to repay your loan to make a profit. You place a sell order using Auto-Repay, and Binance Margin will sell your BTC, and automatically use the proceeds to repay the 20,000 USDC you borrowed.
- Step 4: You use the ‘Close Position’ function in order to close out your BTC position, and have selected USDC as the settlement token. Assuming you no longer have any USDC debt, Binance Margin will sell any remaining BTC to USDC using market orders.
Disclaimer and Risk Warning: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. Digital asset prices are subject to high market risk and price volatility. The information provided does not constitute, in any way, a solicitation or recommendation or inducement to buy or sell the products. The value of your investment may go down or up, and you may not get back the amount invested. Cross-margining contributes to providing greater leverage than a regular margin account, and greater leverage creates greater losses in the event of adverse market conditions. There is increased risk that a user's cross-margin positions will be liquidated involuntarily, causing possible loss. Comments and analysis do not constitute a commitment or guarantee on the part of Binance. You are solely responsible for your investment decisions and Binance is not liable for any losses you may incur. Past performance is not a reliable predictor of future performance. You should only invest in products you are familiar with and where you understand the risks. You should carefully consider your investment experience, financial situation, investment objectives and risk tolerance and consult an independent financial adviser prior to making any investment. This material should not be construed as financial advice. This product may not be available in certain countries and to certain users. This content is not intended for users/countries to which prohibitions/restrictions apply. For more information, see our Terms of Use and Risk Warning. To learn more about how to protect yourself, visit our Responsible Trading page.