📘 What is Margin Trading & How to Do It on Binance?
Imagine you want a pizza worth ₹1,000 but only have ₹200. You borrow ₹800, buy the pizza, sell slices for profit, then return the loan. That’s how margin trading works in crypto! 🍕➡️💹
👉 You use your own funds (margin) + borrow from Binance to trade bigger with leverage.
✅ 5x leverage = ₹100 controls ₹500 worth of crypto
✅ Profits grow faster, but losses are also magnified
❌ If losses hit your collateral, you get liquidated
🔑 Tips for Beginners:
1️⃣ Start with low leverage (2x–3x).
2️⃣ Watch your liquidation price.
3️⃣ Remember interest fees on borrowed funds.
4️⃣ Only trade with money you can afford to lose.
🛠️ Step-by-Step on Binance
1. Open a Margin Account (Spot Wallet → Margin).
2. Transfer collateral (e.g., 100 USDT).
3. Borrow funds (e.g., +200 USDT).
4. Trade ETH/USDT using Margin mode.
5. Sell ETH, repay loan + interest, keep profits.
⚡ Pro Tips to Win in Margin Trading
Always set a stop-loss.
Fix a take-profit target.
Stick to one strategy.
Avoid sideways markets.
🚨 Margin trading = high risk, high reward. Learn, practice, and manage risk before going big!