đ Tutorial: How to Use Margin Trading on Binance
đ§ What is margin trading?
Margin trading allows you to borrow funds to increase your purchasing power and thus potentially your gains. It involves trading with leverage, such as 2x, 3x, or more.
đ Step 1: Activate a margin account
1. Log in to Binance.
2. Go to "Wallet" > "Margin Account".
3. Click on Activate.
4. Read and accept the terms of use for margin trading.
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đ° Step 2: Transfer funds to the margin account
1. Click on Transfer in the margin interface.
2. Choose the spot wallet as the source.
3. Transfer the crypto (e.g., USDT or BTC) to the margin account.
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đ Step 3: Borrow funds
1. Click on "Borrow" in the interface.
2. Choose the amount to borrow based on the available collateral (the ratio depends on the asset).
3. Warning: The higher the amount borrowed, the greater the risk of liquidation.
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đ Step 4: Place a margin order
1. Access the desired trading pair (e.g., BTC/USDT).
2. Click on "Cross 3x" or "Isolated" depending on the chosen mode (see below).
3. Place a buy or sell order as in spot trading.
4. The order will use both your own funds + borrowed funds.
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đ Step 5: Repay the loan
1. Once the trade is closed (gain or loss), go to the Repay tab.
2. Repay the borrowed capital + the interest owed.
3. It is possible to track the risk level in the margin dashboard.
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𧩠Types of margin:
Cross Margin: The overall balance covers multiple positions (riskier).
Isolated Margin: Each trading pair is independent (safer).
â ïž Warning
> Margin trading amplifies gains but also losses. In the event of a sharp drop, a liquidation may occur, resulting in the loss of all capital. It is important to educate yourself well and invest carefully.
