In Margin trading, “Long” refers to buying at a low price and then selling at a higher price. By doing this you can earn a profit from the price difference.
Click the video below to view how to use Long (Buy/Sell) on Margin trading.
Suppose BTC is currently at 10,000 USDC and you think it will rise in the future.
1. Log in to your Binance account and go to [Trade] - [Margin].
2. After transferring 10,000 USDC to your Margin Wallet as collateral, go to the [Buy] tab and click [Cross 3x].
3. Select [Limit] order and click [Borrow], then enter 10,000 next to USDC.
4. Enter the amount to buy next to [Total], such as 3 BTC, and click [Margin Buy BTC].
5. Once the order is fulfilled, you’d have bought 3 BTC with 10,000 USDC as collateral and borrowed 20,000 USDC. This means you'll be margin buying 3 BTC at 10,000 USDC each.
For more details, please refer to How to Use the Auto Borrow and Auto Repay.
Suppose after 2 weeks, the market moves in a favorable direction and BTC is now at 12,000 USDC. Binance Margin offers you two options to close your long position:
You can place a sell order using the [Repay] mode to profit from the price difference. Sell Order with Auto-Repay Mode will use the filled amount to repay your debt. For example in this case, your filled USDC amount will be used to repay the USDC debt first.
Go to the [Sell] tab, select [Limit] order, and click [Repay] to sell 3 BTC at 12,000 USDC each. Once your order is fulfilled, the system will automatically repay the borrowed 20,000 USDC.
Since you margin bought 3 BTC for 30,000 USDC, your profit after the repayment would be 36,000 - 30,000 = 6,000 USDC. If we ignore the fees and interests, you have earned a 60% profit from the trade.
For more details, please refer to How to Use the Auto Borrow and Auto Repay.
Each position has its own [Close Position] Button. The ‘Close Position’ function allows you to fully or partially exit a single cryptocurrency position (with a position value greater than 10 USDT or negative position).
You can click on [Close Position] next to the BTC position, the system will repay any BTC debt and sell remaining assets into the settlement token, assuming USDC is selected.
Since you margin bought 3 BTC for 30,000 USDC, your profit after the repayment would be 36,000 - 30,000 = 6,000 USDC. If we ignore the fees and interests, you have earned a 60% profit from the trade.
For more details, please refer to How to Use the Close Position and Repay Functions on Binance Margin.
Margin trading amplifies risks too. When the market moves in the opposite direction, you can use an OCO (One-Cancels-the-Other) order to mitigate risks.
Suppose after margin buying 2 BTC, BTC goes down. To mitigate liquidation risk, you can place a sell OCO order.
1. Go to the [Sell] tab, select [OCO] and [Repay].
2. Enter a sell price, such as 12,000 USDC, a stop price, such as 9,905 USDC, and a limit price, such as 9,900 USDC.
3. Enter the sell amount and click [Sell BTC].
The system will automatically execute the OCO order based on market conditions. If BTC goes down to 9,905 USDC, your sell stop order will be placed at 9,900 USDC and the limit order will be canceled. If BTC goes up to 12,000 USDC, your sell limit order will be placed at 12,000 USDC and the stop order will be canceled.
For more details, please refer to What Is an OCO (One-Cancels-the-Other) Order and How to Use It?
