Binance Margin Quiz Answers Aug 2022 | Binance Margin Trading Quiz Answers

Margin trading is the process of using funds provided by third parties to trade assets. And understanding the Binance Margin Quiz Answers makes it easy to calculate risk and reward

The advantage of a margin trading account over a regular trading account is that traders can access more funds and be more flexible when using positions.

Margin trading basically increases the profit of trades so that traders can earn more profit on successful trades.

Margin trading is particularly popular in low-volatility markets, such as the international forex market, due to its ability to increase trading returns. However, margin trading can also be found in stock, commodity and cryptocurrency markets.

Our goal in today’s article is not to learn margin trading, but to discuss how to get into margin trading by bypassing the Margin Trading Quiz Answers.

If you are new to trading, you should start with futures trading. Here is another article that talks about Binance Futures Trading Quiz Answers and 10% Fee Discount Process.

Binance Margin Quiz Answers

1. Binance Margin includes cross margin and isolated margin. Which one of the following sentences does not describe their difference?

Ans.- They have different interest rates.

2. Margin level is used to evaluate the risk level of your margin account. How is margin level calculated?

Ans.- Margin level = total assets value/(total borrowed value + total accrued interest value)

3. Which one of the following events will force you to liquidate?

Ans.- The margin level has reached the liquidation level

4. How often is margin interest calculated?

Ans.- Hourly, at the time of borrowing

5. Do you need to borrow manually before trading?

Ans.- No, you can use the “auto borrow” function on the trading page

6. Which one of the following factors does not affect your maximum borrowing limit?

Ans.- The borrowing period

7. Which one of the following sentences is correct regarding your borrowing interest rate?

Ans.- The borrowing interest rate will change with the market, and the system will notify you when it changes

8. In the event of liquidation, how to repay your debts?

Ans.- Binance insurance funds will write off your debts

9. How to pay the interest fee with BNB in cross margin

Ans.- Transfer BNB to cross margin account and repay manually

10. When you receive a margin call notification, what should you do?

Ans.- Reduce your position to repay the debt or add more collateral into the margin account

11. When trading on Margin, a forced liquidation occurs when the margin risk ratio (total assets/total debts) reaches the liquidation risk ratio. Users are charged a “Liquidation Clearance Fee” in the event of forced liquidation. Which of the following contains the correct description for Liquidation Clearance Fees?

Ans.- When the position is forcedly liquidated, a Liquidation Clearance Fee will be charged according to the amount of the assets being liquidated. The system may use all the remaining assets in the margin wallet to complete the liquidation.

12. When the margin risk ratio (total assets/total debts) of your margin wallet reaches liquidation risk ratio, which one of the following best describes what will happen?

Ans.- All of the above.

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