📈 Let me explain it simpler: What is “Margin” on Binance?
Did you see the “Margin” option on Binance and aren’t quite sure what it’s for? Don’t worry, I’ll explain it easily:
What is trading on margin?
Trading on margin on Binance means you borrow money to trade more than you have.
It’s like trading with “borrowed money” to increase your profits (or your losses).
How does it work?
1. You choose the pair (e.g., XRP/USDT).
2. You select whether you want to trade in cross mode (using your entire balance) or isolated mode (using only what’s for that trade).
3. Binance lends you USDT or XRP according to the pair you choose.
4. You execute the trade (buy or sell).
5. Then you pay back the loan with a small interest.
What do you see on the screen?
• Leverage (e.g., 5x): You trade with 5 times more than you have.
• Margin level (e.g., 999): The higher, the better. If it drops too much, you could be liquidated.
• Price, amount, total: You set your order just like in Spot.
• Margin buy: You execute the order with the loan applied.
✅ Who is it for?
• For experienced traders.
• If you are just starting, try first with Spot or Demo, because margin can be risky if you don’t manage it well.
⚠️ Caution:
If the market goes against you, Binance may automatically close your position (liquidation) and you could lose part or all of your invested capital.
