Binance uses a sophisticated risk control system and liquidation model to support high leverage trading by adopting the Maintenance Margin model. For the latest updates, please refer to the Leverage & Margin page.
The maximum amount of leverage available depends on the notional value of your position — larger positions allow for lower leverage. You can adjust the leverage based on your needs, and all position sizes are calculated based on the contract's notional value. Therefore, the Initial Margin is determined by the leverage you select.
Please note that you should first select your leverage (and meet the Initial Margin requirement) before opening a position. Higher leverage allows for a smaller notional position size, while lower leverage allows for a larger one.
The system will display the maximum allowable position size for different tiers of leverage as shown below:
Maintenance Margin is a critical term used in trading, particularly in futures. It refers to the minimum amount of collateral a trader must maintain in their account to keep an open leveraged position. It is calculated based on the notional value of open positions across different value tiers.
Maintenance Margin = Notional Position Value * Maintenance Margin Rate - Maintenance Amount
Without prejudice to Binance's right to adjust margin requirements from time to time in accordance with the Futures Services Agreement, where a Maintenance Margin Rate adjustment of each tier is less than 0.5%, Binance may, in its sole discretion, apply the adjustment without issuing an announcement.
Please refer to the Leverage and Margin table for the latest information regarding Notional Position Values, maximum leverages, and the corresponding Maintenance Margin Rates and Maintenance Amounts.
The Maintenance Margin is calculated based on your positions at different notional value tiers. This means that the Maintenance Margin is always calculated in the same way, regardless of what leverage you select. Moving from one tier to another will not cause the previous tier to change its leverage. The larger the position, the higher the Maintenance Margin rate.
In most exchanges, the Maintenance Margin is usually half of the Initial Margin. At Binance, however, the Maintenance Margin is only less than half of the Initial Margin, which is more beneficial to traders.
It is important to note that the Maintenance Margin will directly affect the liquidation price. To avoid auto-deleveraging, it is highly recommended to close your positions before the collateral falls below the Maintenance Margin.
Maintenance Margin calculations are done via a “Bracket” setup and are always calculated the same way, regardless of what leverage you choose. Moving from one bracket to another will not cause the earlier bracket to change its leverage. To avoid auto-liquidation, you should liquidate positions before the collateral falls below the Maintenance Margin.
1. Can I adjust the leverage of an open position?
If you have an open position in the Cross Margin Mode, you can increase/lower the leverage by using the [Adjust Leverage] button.
If you have an open position in the Isolated Margin Mode, you cannot reduce the leverage.
2. In the Hedge mode, does the maximum position limit of each tier include both long and short positions?
The position notional limits for long and short positions are calculated together in absolute value. Therefore, the position notional limits are shared.
3. Why did my leverage adjustment fail?
Adjusting leverage requires the completion of your identity verification (KYC) process. Please note that even after completing the KYC, it may take up to 48 hours to synchronize your data at the system level. In some cases your KYC application may still be under review or it has not been approved.
