php editor Zimo brings you a detailed tutorial on margin trading. On Binance Exchange, isolated margin trading is a way to invest using borrowed currency, which can bring greater returns and risks. This tutorial will introduce you to how to conduct BTC isolated margin lending transactions on Binance Exchange, and provide detailed steps and precautions to help you better understand and use this trading method. Whether you are a newbie or an experienced trader, this tutorial will provide you with valuable help and guidance. Let’s master the skills of isolated margin loan trading together!
After the user transfers the assets of the leveraged currency pair to the isolated position, it will be displayed in the form of a leveraged position and is still in the status of pending opening. When a user performs a borrowing operation, a real liability is generated and a real position is formed. The following is a brief explanation of the tutorial on completing the BTC isolated margin loan on Binance exchange.
Log in to the Binance official website and click on the [Trade]-[Margin Trading] option.
#2. Click [Isolated Margin] and select the trading pair BTC/USDT.
#3. In the trading panel, click [Transfer] on the right to transfer margin or transfer assets.
4. On the pop-up transfer page, confirm the transfer from "Spot Account" to "Isolated Margin Account" (such as BTCUSDT Isolated Margin Account), select the currency and quantity, Click [Confirm].
5. In the transaction panel, click the [Borrow] button on the right.
#6. In the pop-up borrow/repayment window, select the currency and quantity, and click [Confirm Loan].
7. If you expect the market to fall in the future, you can choose to borrow digital assets and sell them at a high price, then buy them at a low price and repay them in the future. Specific operations: In the trading panel, click on the order type (limit price, market price, OCO or stop profit and stop loss) and select the trading mode [Normal]. Enter the selling price and quantity and click [Sell].
#8. After realizing the profit, return the liability (borrowing interest). In the transaction panel, also click [Borrow] on the right.
9. On the borrow/repayment page that pops up, switch to the [Repayment] page, select the currency and the amount to be returned, and click [Confirm Repayment].
10. Go to the top menu [Wallet]-[Margin Account] to enter the margin account interface. Select [Isolated Margin] and filter trading pairs by currency (such as BTC) to view the assets and liabilities.
11. Go to the top menu [Order]-[Leverage Order] to enter the margin order interface. Select [Isolated Margin] to filter trading pairs by time, trading pair (such as BTCUSDT) and transaction type, and view historical orders.
The amount of isolated margin borrowing depends on the selected trading platform and corresponding regulations. Different platforms may have different policies and restrictions. Usually, the platform will determine the amount that can be borrowed based on the user's account value, position size, and selected leverage.
In isolated position trading, you need to select the specific position size and leverage multiple when opening a position. The amount you borrow will be linked to your chosen leverage and position size. Usually, the borrowing amount can be calculated as:
Borrowing amount=position size×(leverage multiple-1)Borrowing amount=position size×(leverage multiple-1)
where, Position size is the amount of assets you want to trade, while leverage represents the chosen leverage. The "-1" in the above formula is because the account already has part of its own funds, and the leverage is based on the multiple of this existing funds.
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