Updated Sep 17, 2024

Binance Margin enables users to borrow funds against their holdings and utilize leverage, ultimately allowing for more capital-efficient trading.

Margin trading supports leveraged long and short positions across a variety of digital assets on the spot market, thus allowing users to capitalize on both rising and falling markets.

Binance Margin offers different products to users, including Cross Margin, Isolated Margin, and Portfolio Margin.

Introduction

Margin trading is a method of trading assets using borrowed funds. Traders can amplify trading results by accessing greater sums of capital to leverage their positions. Traders can realize greater profits on successful trades but also potentially realize more significant losses when the market moves against their position.

What Is Binance Margin?

Binance Margin enhances a trader's capital efficiency by allowing them to borrow funds to capitalize on market movements, whether rising or falling. Binance offers Cross Margin, Isolated Margin, and Portfolio Margin options, allowing users to trade according to their specific strategies.

Binance Margin Glossary

Margin Level

Margin Level of Cross Margin Account = Total Asset Value of Cross Margin Account / (Total Liabilities + Outstanding Interest)

Your Margin Level is a key risk metric for your margin account. It determines whether you can trade normally, receive a margin call, or be liquidated.

Collateral Ratio (for Cross Margin only) 

Depending on the amount of assets held in your Cross Margin wallet, certain margin assets may be valued on a discounted basis using a "Collateral Ratio," which is a percentage at which the asset is recognized as collateral. The Collateral Ratio is tiered and may change as the relevant margin asset amount in your Cross Margin account increases and/or decreases. The full collateral margin ratio list can be found on the Margin Data page. Read this FAQ for more information.

Interest 

Margin users need to pay interest on the funds they borrow. The system automatically accrues one hour's interest when you borrow funds. Subsequently, the system will accrue a new hour's interest each hour. Margin interest rates will change every hour based on current market conditions.

BNB Discount 

If you enable the BNB discount function, you can enjoy a 25% discount on margin trading fee and a 5% discount on Cross Margin interest fee. Make sure you have enough BNB balance in your Cross Margin account to use this feature.

Insurance Fund

The Margin Insurance Fund is designed to make up for losses incurred when the user’s Cross Margin or Isolated Margin account equity (asset minus liability) is less than 0, or when the user is unable to repay debts on Crypto Loan orders.

Index Price 

The Index Price is a bucket of prices from the major spot market exchanges, weighted by their relative volume. The Index Price is used to calculate some parameters like Margin Level, PNL, etc.

Cooling-off Period 

As part of Binance’s commitment to responsible trading, the Cooling-off Period function allows you to temporarily suspend both Cross and Isolated Margin borrowing for a specified time frame. You can set a Cooling-off Period of 1 day, 3 days, or 1 week, according to your needs. During this time, you won’t be able to borrow any cryptocurrencies using your Margin account.

Auto Top-up

Once you enable this function, when a margin call is triggered, the Auto Top-up function automatically transfers assets from your Spot Wallet to your Margin Wallet to top up the Margin account.

Margin Call

When your Margin Level drops below a certain threshold, you will receive a margin call notification. To reduce your chances of liquidation, you can reduce your position, repay your debts, or add more collateral. Different margin products have varying Margin Call ratios, which you can customize to your preferred level.

Liquidation

When the liquidation threshold is reached, a user’s margin position will be liquidated, and their collateral will be sold to repay any liabilities and interest owed. Each margin mode and leverage multiplier has a different liquidation margin level. Read this FAQ for more information.