Main Takeaways
Binance Margin Trading enables users to borrow funds against their holdings, offering up to 10x leverage through Isolated Margin and up to 20x leverage through Cross Margin for a more capital-efficient trading.
Supporting leveraged long and short positions across more than 700 margin pairs on the spot market, it offers opportunities to capitalize on both rising and falling prices.
Binance offers negative equity protection to safeguard users in case their positions get liquidated and the proceeds from selling the assets in their Margin accounts are insufficient to repay the outstanding principal and interest.
Crypto margin trading allows users to borrow funds against their holdings and utilize leverage, ultimately allowing for more capital-efficient trading. However, it also carries increased risks, as both potential profits and losses are amplified. This blog will explore everything you need to know about how margin trading works on Binance.
Binance Margin Trading supports leveraged long and short positions across a variety of digital assets on the Spot market, offering up to 10x leverage through Isolated Margin and up to 20x leverage through Cross Margin. Additionally, Binance Margin offers over 700 margin pairs, the most extensive selection available in the market.
Pros & Cons of Binance Margin Trading
A more advanced mode of trading, margin trading offers users certain efficiencies and flexibility that spot trading does not. However, users should be mindful of the risks and downsides inherent in this type of trading. The table below summarizes the pros and cons of margin trading on Binance.
Types of Margin Trading on Binance: Cross vs. Isolated Margin
Binance offers a comprehensive suite of margin trading products designed to appeal to a variety of trading styles and risk profiles. The differences between our Cross Margin, Cross Margin Pro, and Isolated Margin products are summarized in the table below.
How to Start Margin Trading on Binance?
If you’re looking to get started with Binance Margin, you can easily do so by following these steps:
1. First, head to Binance and register an account if you haven’t done so already.
2. Complete the identity verification process, making sure to have all the necessary documents as you complete this step.
3. Open your Binance Margin trading account. Before you can begin trading, you are required to complete an appropriateness assessment questionnaire and answer all the questions correctly.
4. Once you have completed the questionnaire, you can start transferring assets into your Margin Account to trade on Binance Margin. To learn more about the different Margin modes that Binance offers, refer to this FAQ: Differences Between Isolated Margin and Cross Margin.
Binance Margin Borrowing Limits
Binance Margin loans do not have fixed terms; they can be repaid at any time, thereby providing greater flexibility for implementing trading strategies. Depending on the selected product, Margin borrowing limits will differ based on the digital assets borrowed, the chosen leverage, and/or the user's VIP tier.
In Cross Margin, the borrowing limits are tiered based on the user's VIP level.
In Isolated Margin, the borrowing limits are tiered based on the user’s VIP level, the tier of the position, and the leverage selected by the user.
In Cross Margin Pro, the borrowing limits are tiered according to the leverage used.
Interest Rates on Binance Margin Loans
Margin loan interest is the cost incurred by users for borrowing digital assets to trade on Binance Margin. The specific interest rate is determined based on demand, available supply, and the type of digital assets borrowed. Interest is incurred hourly and only on the loan amount.
What Can Be Used as Collateral for Binance Margin Trading?
Binance Margin supports a substantial number of digital assets as margin collateral. For a list of supported digital assets, please refer to our Margin Data.
Collateral Ratios
Certain Margin assets may be valued on a discounted basis using Collateral Ratio, a percentage at which the asset is recognized as collateral. Please see Collateral Ratios for more details.
Collateral Ratio is tiered and may change as the relevant margin asset amount in your Cross Margin account increases or decreases.
Collateral Value refers to the total value of all assets in your Cross Margin account (in USDT), taking into account the relevant Collateral Ratio (the percentage at which the relevant asset is valued).
Collateral Value impacts your maximum borrowable and transfer-out amounts. However, it does not impact your Margin Level for liquidation purposes, which will continue to be calculated based on the total assets without any haircuts.
Margin Call
If the Margin Level falls below a certain value, Binance may issue a Margin Call. During a Margin Call, users are required to deposit additional collateral in the Margin account or to close or downsize their position to bring the Margin Level back above the required level. Users will receive a notification through their registered email, SMS, website, or mobile app. If the user does not take the necessary action, their collateral assets in the Margin account may be sold (or “liquidated.”)
For Isolated Margin Margin Call thresholds, please refer to Isolated Margin.
For Cross Margin Margin Call thresholds, please refer to Cross Margin.
For Cross Margin Pro Margin Call thresholds, please refer to Cross Margin Pro.
Risk Management Strategies for Binance Margin Trading
All Binance Margin loans are over-collateralized and have liquidation protocols in place, in line with our prudent approach to risk management. If a user’s Margin Level falls below the liquidation level, Binance will liquidate the user’s collateral. This means that the proceeds from the sale of the user’s collateral will be used to repay any outstanding liabilities.
For Isolated Margin liquidation thresholds, please refer to Isolated Margin.
For Cross Margin liquidation thresholds, please refer to Cross Margin.
For Cross Margin Pro liquidation thresholds, please refer to Cross Margin Pro.
For more information about how the Margin Level is determined for Cross Margin and Isolated Margin, please refer Binance Margin Level and Risk Control.
Negative Equity Protection
Binance maintains a Margin insurance fund that protects users, in case their positions get liquidated and the proceeds of selling the assets in the Margin account are insufficient to repay the outstanding principal and interest. This insurance fund is maintained by charging users who are subject to a forced liquidation fee, which is then transferred to the Margin insurance fund.
For liquidation clearance fee information, please refer to Liquidation Fee.
For the current Margin insurance fund balance, please refer to Insurance Fund balance.
Final Thoughts
Margin trading on Binance offers a powerful toolkit for experienced traders seeking to amplify their positions and capitalize on market movements in either direction. With access to over 700 margin pairs and up to 20x leverage through Cross Margin Pro, users benefit from deep liquidity, flexible borrowing, and advanced features like negative equity protection and a robust risk management framework. Whether you’re hedging against volatility or looking to optimize capital efficiency, Binance Margin provides the infrastructure to support your strategy.
However, leverage magnifies not just gains, but also losses, which is why sound risk management is essential. Margin trading is not for everyone, but for those who understand the mechanics, are comfortable with volatility, and have the discipline to manage risk, it can be an extremely valuable tool. If you're confident in your trading experience and ready to explore margin trading, Binance offers a secure, feature-rich environment to begin – try it today!
Further Reading
Binance Margin Trading Guide in 2025: Key Tools Every Crypto Trader Must Know
Crypto Spot Trading vs. Margin Trading – Which is Right for You?
Risk Management Strategies and Tools for Short Selling in Margin Trading
Disclaimer and Risk Warning: Digital asset prices are subject to high market risk and price volatility. The information provided does not constitute, in any way, a solicitation or recommendation or inducement to buy or sell the products. The value of your investment may go down or up, and you may not get back the amount invested. Cross-margining contributes to providing greater leverage than a regular margin account, and greater leverage creates greater losses in the event of adverse market conditions. There is increased risk that a user's cross-margin positions will be liquidated involuntarily, causing possible loss. Comments and analysis do not constitute a commitment or guarantee on the part of Binance. You are solely responsible for your investment decisions and Binance is not liable for any losses you may incur. Past performance is not a reliable predictor of future performance. You should only invest in products you are familiar with and where you understand the risks. You should carefully consider your investment experience, financial situation, investment objectives and risk tolerance and consult an independent financial adviser prior to making any investment. 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 to which prohibitions/restrictions apply. For more information, see our Terms of Use and Risk Warning. To learn more about how to protect yourself, visit our Responsible Trading page.