About Binance Forced Liquidation Margin Call

Binance compulsory liquidation margin call
Binance compulsory liquidation margin call

Binance Forced Liquidation

margin call

I think that the shape of society changes and changes in a moment.

In fact, there were many negative perceptions of investment in Korea, but it is surprising that it has changed into a positive atmosphere in such a short time.

So many people started stocks and even started Bitcoin.

However, there are quite a few people who are at a loss because there are few people who started with the right information or knowledge.

There are some people who are not familiar with the forced liquidation margin call before investing on Binance, but it is a term that you will hear once in your futures trading.

Keeping in mind that there are always risks involved in investing, it would be good to start after understanding these risks well.

futures trading Forced liquidation margin call
futures trading Forced liquidation margin call

Margin call = forced liquidation = liquidation = bankruptcy

forced liquidation

If the position margin does not meet the maintenance margin requirements, the position will be forcibly liquidated and the position margin will be completely lost.

Liquidation begins when the market average price reaches the liquidation price.

To use leverage, you use a system that lends money from an exchange with cryptocurrency as collateral.

Losses occur in the invested positions, and if collateral is insufficient, the exchange will forcibly liquidate the trader’s collateral to prevent losses.

If the balance becomes negative, you owe the exchange.

However, it is very difficult to get this amount back on the exchange.

So, before the balance becomes negative, we are forcibly liquidating the positions we hold at the market price.

The higher the leverage multiple, the narrower the gap between the entered price and liquidation.

This means that the possibility of forced liquidation increases.

futures trading To avoid being forced to liquidate
futures trading To avoid being forced to liquidate

Therefore, the use of leverage should be done at a low rate, preferably with an isolation margin.

The Stop Loss feature can also help.

Appropriate leverage ratios vary from seed to seed. You may find it helpful to find the trading methods of related YouTubers.

Also, since there is a difference between isolation margin and crossover margin, it would be good to know the difference between isolation margin and crossover margin in detail.

Binance Exchange offers a 20% discount on lifetime fees, so many people use it.
In addition, it has the world’s largest trading volume, so it is advantageous for short-term trading and can be used with confidence.

When using futures trading leverage, you should start by getting a fee discount.

This is because fees increase as the leverage ratio increases.

If you have not signed up for the 20% discount, we recommend re-subscribing.

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Binance Lifetime Fee 20% Off Signup Link


The advantages of trading futures are that they allow you to profit even in a bear market, and you can use leverage to create volume and create larger returns.

In fact, it is difficult to make a lot of money from spot trading, so it will be helpful if you use futures trading leverage appropriately.

However, you need to be careful about the risks before investing, especially when using futures trading so you don’t get liquidated.

I share information about Bitcoin on my blog, so please read other articles.

You should learn about coins and try to avoid losing them as much as possible.

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