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Binance Margin Trading allows users to borrow funds against their holdings and utilize leverage, allowing for more capital-efficient trading.
Margin Trading supports leveraged long and short positions on a variety of digital assets in the spot market, thus allowing our users to capitalize on both rising and falling markets.
Margin Trading on Binance supports leverage of up to 10x through our Isolated Margin and Cross Margin products.
Binance Margin offers over 600 margin pairs, the largest number in the market.
When certain requirements are met, borrowed digital assets can be transferred out of the margin pool and/or withdrawn from the platform to execute cross-exchange arbitrage strategies.
Negative equity protection is in place to protect users in the event that their positions are liquidated and the proceeds from the sale of assets in their margin accounts are insufficient to pay the outstanding principal and interest.
Pros and Cons of Binance Margin Trading
What types of Margin Trading products does Binance offer?
Margin Lending Limits
Binance margin loans do not have fixed terms; they can be repaid at any time, thus providing greater flexibility for implementing trading strategies.
Depending on the margin product selected, margin lending limits will differ based on the digital assets borrowed, the leverage chosen, and/or the user's VIP level.
In Cross Margin, borrowing limits depend on the user's VIP level.
In Isolated Margin, borrowing limits depend on the user's VIP level, position level, and the leverage selected by the user.
Cross Margin Pro, borrowing limits depend on the leverage used.
Margin Loan Interest
Margin lending interest is the cost incurred by users for borrowing digital assets for margin trading.
The specific interest rate is determined based on demand, available supply, and the type of digital asset being borrowed.
Interest is accrued hourly and only on the loan amount (simple interest).
Binance sets a daily interest rate limit to improve user security.
For current rates, see Interest Rates.
Margin Guarantee
Binance Margin supports a substantial number of digital assets as margin collateral. For a list of supported digital assets, please refer to margin data.
Guarantee Fees
Certain margin assets may be valued on a discounted basis using a “Collateral Rate”, a percentage at which the asset is recognized as collateral. Please see Collateral Rates.
The Collateral Rate is tiered and may change as the value of the relevant margin asset in your Cross Margin account increases/decreases.
Collateral Value refers to the total value of all assets in your Cross Margin account (in USDT), taking into account the relevant Collateral Rate (the percentage at which the relevant asset is valued).
The Collateral Value affects your maximum amounts that can be borrowed and transferred, however, it does not affect your Margin Level for liquidation purposes, which will continue to be calculated based on total assets without haircuts.
Margin Call
If the Margin Level falls below a certain value, Binance may issue a margin call, requiring the user to deposit additional collateral into the margin account or close or reduce their position to bring the Margin Level back above the required level.
Users will receive a notification via email, SMS, website or mobile app. If the user fails to take the necessary action, their collateral assets in the margin account may be sold (or “liquidated”).
For isolated margin call limits, see Isolated Margin.
For cross margin call limits, see Cross Margin.
For Cross Margin Pro margin call limits, please see Cross Margin Pro.
Platform Risk Management
All of our margin loans are overcollateralized and have liquidation protocols aligned with our prudent risk management approach.
If a user’s Margin Level falls below the liquidation level, we will liquidate the user’s collateral. This means that the proceeds from the sale of the user’s collateral will be used to pay off any outstanding liabilities.
For Isolated Margin liquidation limits, see Isolated Margin.
For Cross Margin liquidation limits, see Cross Margin.
For Cross Margin Pro liquidation limits, see Cross Margin Pro.
More information on how the Margin Level is determined for Cross Margin and Isolated Margin can be found here.
Negative equity protection
Binance maintains a margin insurance fund that protects users in case their positions are liquidated and the proceeds from the sale of assets in the margin account are not sufficient to pay the outstanding principal and interest.
This insurance fund is maintained by charging users who are subject to a forced liquidation a fee, which is transferred to the margin insurance fund.
For information on the settlement fee, see Settlement Fee.
For the current margin insurance fund balance, see Insurance Fund Balance.
Disclaimer and Risk Warning: Digital asset prices are subject to high market risk and price volatility. The information provided does not in any way constitute a solicitation, recommendation or inducement to buy or sell any products. The value of your investment may go down as well as up and you may not get back the amount you invested. Cross margin helps provide greater leverage than a regular margin account, and higher leverage creates greater losses in the event of adverse market conditions. There is a greater risk that a user’s cross margin positions may be unintentionally liquidated, resulting in potential losses. Comments and analysis do not constitute a commitment or guarantee by Binance. You are solely responsible for your investment decisions and Binance is not responsible for any of your possible losses. Past performance is not a reliable indicator of future performance. You should understand the risks involved and only invest in products that you are familiar with. Before making any investment, carefully evaluate your investment experience, financial situation, investment objectives, risk tolerance, and consult an independent financial advisor. 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 where prohibitions/restrictions apply. For more information, please see our Terms of Use and Risk Warning.
