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Author Topic: Question about margin trading and repaying.  (Read 58 times)
TankCoin (OP)
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December 16, 2020, 07:09:05 PM
 #1

On Binance, let's say I put 100 USDT into a margin account and do 10x leverage, borrowing to do it,
so I can then trade with 1,000 USDT. Then I get liquidated at 10x. Do I owe the exchange $1,000?

If I never had $1,000 to start with (I only had $100) how does that work?

JeromeTash
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December 16, 2020, 09:58:49 PM
 #2

The 100 USDT you deposited will act as a collateral and there is a specific liquidation price where your 100 USDT collateral will get liquidated should things go south. Once you get liquidated you won't own them anything since they have already taken the 100 USDT you deposited.

Read this to understand.
https://academy.binance.com/en/articles/binance-margin-trading-guide
https://academy.binance.com/en/articles/what-is-margin-trading
https://www.binance.com/au/support/faq/360030851071-What-is-Margin-Trading

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TankCoin (OP)
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December 17, 2020, 02:28:13 AM
 #3

Cheers, I was panicking before wondering about it lol.
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