Why should I trade with Binance margin?
What is margin trading?
Margin trading is a way of using liquidity provided by a third party to conduct transactions. Unlike traditional trading accounts, margin trading accounts allow traders to acquire more liquidity and support them in using positions.
Trading with Binance margin increases a trader’s purchasing power and allows you to use someone else’s money to increase financial leverage. Margin trading offers greater profit potential than traditional trading.
Why is Binance margin good for you?
● Diverse trading pairs: Traders are not limited as they can trade diverse pairs of assets. Binance margin trading supports open trades with various assets such as BTC, ETH, BNB and so much more.
● Multi-asset collateral: Binance margin users are able to use multiple assets as collateral to borrow and trade using leverage. This is done in the cross-margin mode where traders can instead of collateralizing just BTC into a BTC-based margin trade, traders can use their BTC, ETH, BUSD or USDT among others, to denominate their collateral, allowing traders to operate with more flexibility when trading.
● Cooling-off period: In order to help users avoid excessive trading, margin trading has introduced a cooling-off period function.This is one of Binance’s efforts to encourage responsible trading and prevent compulsive trading behavior.
● Insurance fund: An insurance fund protects your account when your equity (assets-liabilities) is lower than 0 or when the trader is unable to repay debts due to insufficient funds.
How to use Binance Margin trading
Step 1: TRANSFER
● Tap [Wallets icon]
● Go on to Select [Margin]
● Tap [Transfer]
● Select what wallet you’ll be transferring from.
(In this example it’s a transfer from Spot wallet to Margin)
● Go on to select the asset and the amount you want to transfer then Confirm the Transfer.
Step 2: BORROW
● Tap [Borrow] and input the amount you wish to borrow.
● Be sure to note the hourly interest rate then tap [Confirm Borrow]
Voila! The funds will be credited to your margin account, and you can access this via your Margin wallet. You can begin trading on your margin account.
Steps on how to Repay.
● Tap [Repay]
● Select the coin and amount you wish to repay and click ‘Confirm repayment’.
Ensure to closely monitor your margin level. If the margin level decreases, you will either need to increase your collateral or reduce your loan. When the margin level reaches 1.1, the loan will automatically be liquidated, which simply means that Binance will sell the position(s) at market price to repay the loan.
Binance Margin trading provides traders with a lot of benefits, traders can get increased returns by leveraging the value of assets you already own to increase the size of your investment.
For example; A 50% margin would allow a trader purchase twice as much as the asset they can purchase if they were engaged in traditional trading i.e A trader can trade assets of up to $2000 with a $1000 collateral, thereby allowing for greater profits and more diversity in trade according to the traders discretion.
Read more on Binance margin here: How Does Leverage Trading In Crypto Work? | Binance Blog
Begin trading Binance Margin here ⤵️
https://www.binance.com/en/trade-margin/BTC_USDT?ref=86467913
