$BTC $ETH what is margin trading in binance🤔 ??

Margin trading on **Binance** is basically trading with **borrowed money** to increase the size of your trades (and therefore both potential profits *and* losses).

Here’s the clean breakdown 👇

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## What margin trading means

Instead of trading only with the money you own, Binance lets you **borrow funds** and trade a **larger position** than your balance would normally allow.

* Your own funds = **collateral**

* Borrowed funds = **loan**

* You pay **interest** on what you borrow

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## Simple example

Say you have **$1,000**.

* With **2× margin**, you can trade **$2,000**

* Binance lends you the extra **$1,000**

If the price goes **up 10%**:

* Profit ≈ **$200** (instead of $100)

If the price goes **down 10%**:

* Loss ≈ **$200** (also doubled)

⚠️ Losses scale just as fast as profits.

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## Types of margin on Binance

### 1. Cross Margin

* All your margin assets share the same risk pool

* If one trade goes bad, **other assets can be used to prevent liquidation**

* Higher risk if multiple trades fail

### 2. Isolated Margin

* Risk is limited **per trading pair**

* Only the funds you assign to that pair can be liquidated

* Safer for beginners

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## Key terms you’ll see

* **Leverage** – how much you’re borrowing (e.g., 3×, 5×)

* **Margin level** – health of your position

* **Liquidation** – Binance force-closes your trade if losses get too big

* **Interest rate** – cost of borrowing (charged hourly)

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## Important risks (no sugarcoating)

* You can lose money **very fast**

* Liquidation can wipe out your collateral

* Not recommended unless you understand risk management

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## Margin vs Futures (quick comparison)

* **Margin**: you borrow assets and trade spot pairs

* **Futures**: contracts with higher leverage and no borrowing interest (but even riskier)

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