Binance Margin Quiz Answers

Margin trading is a type of asset trading popularly known in low-volatility markets like the international Forex market. Here, we have provided the Binance Margin Quiz and their correct answers, just for you.

Binance Margin Quiz Answers

Margin trading type of asset funds is from third parties. Unlike standard trading accounts, margin trading gives room for traders to get access to larger quantities of money which help them to leverage their holdings.

Also, Margin trading magnifies trading outcomes. This way, traders can make higher gains on successful deals. Its capacity to extend trading outcomes, makes it very popular in low-volatility markets like the international Forex market and used in the stock, commodity, and cryptocurrency markets.

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Over 600 margin trading pairs, the best trading fees, and high liquidity are being offered by Binance at the moment. However, you cannot access Margin trading unless you take the quiz on Binance.

Binance Margin Quiz Answers

Below, we have the Binance Margin quiz including the choices and their answers.

Binance Margin Quiz Answers

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

Options:

  1. 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.
  2. They have different interest rates – Answer
  3. They have different maximum leverage ratio
  4. They support different borrowables

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

Options:

  1. Margin level = total assets value/(total borrowed value + total accrued interest value) – Answer
  2. Margin level = total assets value/(total borrowed value – total accrued interest value)
  3. Margin level = total borrowed value/ total accrued interest value

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

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Options:

  1. The margin level has reached the liquidation level – Answer
  2. The current margin level has reached the initial margin level
  3. The total debt is lower than the total interest

How often is margin interest calculated?

Options:

  1. Hourly, at the time of borrowing – Answer
  2. Daily
  3. Monthly

Do you need to borrow manually before trading?

Options:

  1. Yes
  2. No, you can use the “auto borrow” function on the trading page. – Answer

Crypto

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

Options:

  1. The borrowing period – Answer
  2. The amount of fund in your margin account
  3. Your VIP level
  4. The system borrowing limit
  5. Your individual borrowing limit

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

Options:

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

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

Options:

  1. Binance insurance funds will write off your debts – Answer
  2. You are required to repay the debts yourself

How to pay the interest fee with BNB in cross margin

Options:

  1. Transfer BNB to cross margin account and repay manually – Answer
  2. Repay with the loan

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

Options:

  1. Borrow more funds to hedge the risk
  2. Reduce your position to repay the debt or add more collateral into the margin account – Answer
  3. Do nothing

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?

Options:

  1. The Liquidation Clearance Fee is a fixed value for each liquidation.
  2. 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”.
  3. 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
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When the margin risk ratio (total assets/total debts) of your margin wallet reaches the liquidation risk ratio, which one of the following best describes what will happen?

Options:

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

Crypto

Conclusion

We have supplied you with all the correct answers to this quiz. Simply fill in the correct option to pass the Binance Margin quiz, and then you can start trading Margin.

Please, bear in mind that there are about five steps required before Margin trading. You have to choose your account, transfer, borrow, trade, and then, repay.

However, Margin trading comes with an amount of risk. Do not proceed with it unless you are indeed ready to go ahead.

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Binance Margin Quiz Answers

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