How to open a margin trading account on Binance

After logging into your Binance account, move your mouse to the upper right corner and hover over on the configuration file icon. The display will be different for each person and you will see the first two characters of your email address. When the drop-down menu opens, click on your email to access your account dashboard.

If you do not understand what leverage trading is, we recommend that you read our article "What is Margin Trading" before opening a margin trading account.

Then your account panel will appear in front of you. And you can check your account balance through this interface. Click "Margin Trading" under "Balance Details" to proceed with the process of opening a margin trading account. To create a margin trading account on Binance, you first need to complete identity verification (KYC) and make sure that your country is not blacklisted. You must also enable 2FA (2-step verification).

You will see a reminder about the risks of leveraged trading, please Read carefully. If you want to proceed to the next step, please click the "Open Margin Account" button.

Be sure to read the Margin Trading Account Agreement carefully. If you understand and agree to the terms and guidelines, please check the box and click "I understand".

After activating your margin trading account, you can add Binance Funds in the Wallet are transferred to the margin trading wallet. The operation method of this process is: click the "Wallet" option and select "Margin Trading", and then click the "Transfer" button on the right side of the page.

The next step is to select the The token to be transferred. In this example we will use Binance Coin (BNB).

Enter the amount you want to transfer from the exchange wallet to the margin trading wallet and click "Confirm Transfer".

After transferring BNB tokens to your margin trading wallet, you can borrow using these tokens as collateral. The balance in your margin trading wallet determines the amount you can borrow, which is based on a fixed ratio of 3:1 (3x). So, if you own 1 BTC, you can borrow another 2 BTC. In this example we will borrow 0.02BTC.

After selecting the token you want to borrow and the amount, click "Confirm Borrowing".

Next, your margin trading account will be credited with the Bitcoins you borrowed. You can then use the borrowed funds to conduct transactions, and you will also have a debt of 0.02 BTC and corresponding interest. The interest rate will be updated hourly. You can check the available tokens and corresponding interest rates on the margin trading fees page.

Enter the account balance page and select the "Margin Trading" tab to view the current status of your margin trading account.

On the right side of the screen you will see your leverage trading level, which is based on the funds you have borrowed (total debt) and the funds held as collateral in your margin trading account (account equity) A risk level provided by the amount.

This risk level will change based on market movements, so if the price goes against your prediction, your assets will likely be liquidated. Please note that if funds are liquidated, you will be charged additional fees.

The formula for calculating leverage trading level is:

Risk rate = total asset value /(Total borrowing value + Total accrued interest value)

If your leverage trading level drops to 1.3, you will receive a notification to increase your mortgage (deposit more funds) or reduce your loan (pay off the loan).

If your leverage trading level drops to 1.1, your assets will be automatically liquidated, which means Binance will sell your funds at market price to repay the loan .

If you want to use borrowed funds for trading, you can enter the transaction page and select the "Leverage Trading" option, and then you can use limit price, Trade with market price as well as limit and stop orders.

To repay your debt, click the "Borrow/Repay" button and select the "Repay" option.

The amount you need to pay is the total amount borrowed plus interest. Before proceeding, your balance must reach the required amount. After preparing the required funds, select the token and amount you want to repay, and then click "Confirm Repayment". Please also note that interest will be paid first and you can only repay using the same cryptocurrency.

If you want to transfer funds from your margin trading wallet back to your regular Binance wallet, click "Transfer" and use the switch button in the middle of the two wallets to change the direction of the transfer. Then select the token type and amount and click "Confirm Transfer".

No handling fees will be charged for your fund transfer during this process. However, please note that if you currently have balance sheets, your risk level will increase as the funds in your margin trading wallet decrease. If your risk level rises to a certain level, your assets are likely to be liquidated. So please make sure you understand how leverage trading works before using this feature.

Trading example

Alice believes that the price of BNB will rise, so She wants to open a long position in leveraged trading on BNB. To do this, she first needs to send funds to her margin trading wallet and then lend BTC. Next, she can use the borrowed BTC to buy BNB. If the price of BNB rises as Alice thinks, then she can sell her asset and repay the borrowed BTC plus the corresponding interest. Any funds remaining after this repayment represent her profit.

However, please remember that leveraged trading can not only increase profits but also potentially magnify losses. Therefore, if the market trend is not what Alice expected, her losses will be greater.