What is the process for determining the margin level in Binance when trading digital assets?

3 answers

• Putut Adi PrakosoJun 04, 2022 · 3 years ago
  Sure! When trading digital assets on Binance with margin, the margin level is determined by a formula that takes into account the total value of your assets, the borrowed funds, and the current market price. Binance calculates the margin level by dividing the total value of your assets by the borrowed funds and multiplying it by 100. This calculation gives you a percentage that represents your margin level. The higher the margin level, the lower the risk of liquidation. Binance considers the margin level to determine whether your account has sufficient collateral to support your open positions.
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• Bateman HobbsApr 26, 2024 · a year ago
  Determining the margin level in Binance when trading digital assets is a straightforward process. Binance calculates the margin level by dividing the total value of your assets by the borrowed funds and multiplying it by 100. This calculation gives you a percentage that represents your margin level. It's important to keep an eye on your margin level to ensure that it stays above the liquidation threshold. If your margin level falls below the required level, Binance may liquidate your positions to cover the borrowed funds.
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• Rosario QuinlanOct 21, 2021 · 4 years ago
  When it comes to determining the margin level in Binance, it's crucial to understand the importance of risk management. Binance uses a margin level calculation to assess the risk associated with your positions. By dividing the total value of your assets by the borrowed funds and multiplying it by 100, Binance calculates your margin level. This calculation helps Binance determine whether your account has enough collateral to support your trades. It's essential to maintain a healthy margin level to avoid liquidation and protect your investment.
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