Home » Finance » Binance » Binance Margin Quiz Answers Margin trading is a type of asset trading in which funds are provided by a third party.

As opposed to standard trading accounts, margin trading allows traders to access larger quantities of money, allowing them to leverage their holdings.

In nutshell, it magnifies trading outcomes, allowing traders to make higher gains on successful deals.

Margin trading is extremely popular in low-volatility markets, such as the international Forex market, because of its capacity to extend trading outcomes.

It is also used in the stock, commodity, and cryptocurrency markets.

Binance currently offers over 600 margin trading pairs, the best trading fees, and high liquidity.

Get started on Binance here: https://www.binance.com/en/register?ref=73583477 or use “73583477” as the referral code.

Here are the Binance Margin quiz answers.

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

Choices:

• In isolated margin, borrowing, trading, and risk management functions are included in an independent isolated margin account, while in cross margin, each user can only open one cross margin account where borrowing, trading, and risk management functions are available.
• They have different interest rates
• They have different maximum leverage ratio
• They support different borrowables

Answer: They have different interest rates

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

Choices:

• Margin level = total assets value/(total borrowed value + total accrued interest value)
• Margin level = total assets value/(total borrowed value – total accrued interest value)
• Margin level = total borrowed value/ total accrued interest value

Answer: Margin level = total assets value/(total borrowed value + total accrued interest value)

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

Choices:

• The margin level has reached the liquidation level
• The current margin level has reached the initial margin level
• The total debt is lower than the total interest

Answer: The margin level has reached the liquidation level

#### 4. How often is margin interest calculated?

Choices:

• Hourly, at the time of borrowing
• Daily
• Monthly

Answer: Hourly, at the time of borrowing

#### 5. Do you need to borrow manually before trading?

Choices:

• Yes
• No, you can use the “auto borrow” function on the trading page.

Answer: 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?

Choices:

• The borrowing period
• The amount of fund in your margin account
• The system borrowing limit

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

Choices:

• The borrowing interest rate will change with the market, and the system will notify you when it changes
• The borrowing interest rate will be determined at the time of borrowing, no changes afterward

Answer: 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?

Choices:

• Binance insurance funds will write off your debts
• You are required to repay the debts yourself

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

Choices:

• Transfer BNB to cross margin account and repay manually
• Repay with the loan

Answer: Transfer BNB to cross margin account and repay manually

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

Choices:

• Borrow more funds to hedge the risk
• Reduce your position to repay the debt or add more collateral into the margin account
• Do nothing

#### 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?

Choices:

• The Liquidation Clearance Fee is a fixed value for each liquidation.
• When the position is forcedly liquidated, the user will only be charged with commission fees of liquidation orders and does not need to pay additional “Liquidation Clearance Fees”.
• 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.

Answer: 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?

Choices:

• When your margin wallet is under liquidation, you will not be able to trade with this wallet.
• The system will automatically sell your assets to repay your debts.
• You will be charged a liquidation clearance fee according to the amount of assets being liquidated.
• All of the above.

## Conclusion

After you’ve completed the Binance Margin quiz, you’ll be able to start trading Margin.

However, you must get all the questions right in order to proceed.

You can use the Binance Margin quiz answers above to complete the quiz with a 100% passing rate.

Keep in mind that margin trading is very risky, and you should only try it if you know what you’re doing.

Best Binance Referral ID Code in 2021

How to Send Cryptocurrency From Binance to Another Binance Account

Tags
{"ft_lang_label":"__label__en","ft_lang_prob":0.8917615,"math_prob":0.5173625,"size":6297,"snap":"2023-40-2023-50","text_gpt3_token_len":1326,"char_repetition_ratio":0.16510409,"word_repetition_ratio":0.21856867,"special_character_ratio":0.20755915,"punctuation_ratio":0.1088314,"nsfw_num_words":0,"has_unicode_error":false,"math_prob_llama3":0.9502011,"pos_list":[0,1,2,3,4],"im_url_duplicate_count":[null,1,null,null,null],"WARC_HEADER":"{\"WARC-Type\":\"response\",\"WARC-Date\":\"2023-12-11T08:55:08Z\",\"WARC-Record-ID\":\"<urn:uuid:d0137630-5a21-4030-8a1f-bde1fb1a23e5>\",\"Content-Length\":\"62505\",\"Content-Type\":\"application/http; msgtype=response\",\"WARC-Warcinfo-ID\":\"<urn:uuid:1fc1465e-72f6-4545-8a7a-bf9f1c101eaa>\",\"WARC-Concurrent-To\":\"<urn:uuid:a220f82f-6b13-4e8b-aac6-66010acf9715>\",\"WARC-IP-Address\":\"172.67.75.181\",\"WARC-Target-URI\":\"https://www.followchain.org/binance-margin-quiz-answers/\",\"WARC-Payload-Digest\":\"sha1:EVL36LYUNEMVAHOKMZKP5PIPIDIQUJMI\",\"WARC-Block-Digest\":\"sha1:JTAXZWJRAAWCHGTZ7BW73XRC4NKOIHHF\",\"WARC-Identified-Payload-Type\":\"text/html\",\"warc_filename\":\"/cc_download/warc_2023/CC-MAIN-2023-50/CC-MAIN-2023-50_segments_1700679103810.88_warc_CC-MAIN-20231211080606-20231211110606-00194.warc.gz\"}"}