When you open a leveraged trade, Binance requires some amount as Margin

If your trade goes wrong and margin finishes → your position closes automatically (liquidation).

Simple Example

You trade with $100 leverage power

But Binance asks $10 margin from you

✅ If trade goes in your favor → good profit

❌ If loss increases → Margin decreases

If margin = 0Liquidation! 🚫

2 Types of Margin

1️⃣ Cross Margin — All account balance used as backup

2️⃣ Isolated Margin — Only selected margin at risk (Beginners should use this ✅)

Beginer Rule:

Always use Isolated Margin to avoid account wipe-out ❌