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Binance Margin Quiz Answers August 2022

Binance Margin Quiz Answers

Binance Margin Trading Quiz Answers, Margin Quiz Answers August 2022 : Margin trading is the process of trading assets using funds provided by third parties. And understanding Binance Margin Quiz answers makes calculating risk and reward and margin trading easier.

The advantages of margin trading are many. The advantage of a margin trading account over a regular trading account is that traders have access to more funds, resulting in higher profit potential.

What is Margin Trading?

Binance Margin trading basically helps in increasing the profit of trades so that traders can earn more profit on successful trades.

Margin trading is particularly popular in low-volatility markets such as the international forex market due to its ability to increase trading returns. However, margin trading can also be found in stock, commodity and cryptocurrency markets.

Today’s article aims not to learn margin trading, but to discuss how to get into Binance margin trading by bypassing Binance Margin Trading Quiz Answers.

Also Read: Binance CRYPTO WODL Words Quiz Answers Today List

But if you are completely new to trading, you should start your trading journey with futures trading. Here is another article that talks about Binance Futures Trading Quiz Answers and 10% Fee Discount Process in another article.

Binance Margin Quiz Answers
Binance Margin Quiz Answers

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Binance Margin Quiz Answers August 2022

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

a) Margin level = total assets value/(total borrowed value + total accrued interest value)

b) margin level = total assets value/(total borrowed value – total accrued interest value)

c) margin level = total borrowed value/ total accrued interest value

Correct Answer: a)

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

a) 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.

b) They have different interest rates.

c) They have different maximum leverage ratio.

d) They support different borrowables.

Correct Answer: b)

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

a) The margin level has reached the liquidation level

b) The current margin level has reached the initial margin level

c) The total debt is lower than the total interest

Correct Answer: a)

4. Do you need to borrow manually before trading?

a) Yes

b) No, you can use the “auto borrow” function on the trading page.

Correct Answer: b)

5. How often is margin interest calculated?

a) Hourly, at the time of borrowing

b) Daily

c) Monthly.

Correct Answer: a)

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

a) The borrowing period

b) The amount of fund in your margin account

c) Your VIP level

d) The system borrowing limit

e) Your individual borrowing limit

Correct Answer: a)

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

a) The borrowing interest rate will change with the market, and the system will notify you when it changes

b) The borrowing interest rate will be determined at the time of borrowing, no changes afterward

Correct Answer: a)

8. How to pay the interest fee with BNB in cross margin

a) Transfer BNB to cross margin account and repay manually

b) Repay with the loan

Correct Answer: a)

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

a) Binance insurance funds will write off your debts

b) You are required to repay the debts yourself

Correct Answer: a)

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

a) Borrow more funds to hedge the risk

b) Reduce your position to repay the debt or add more collateral into the margin account

c) Do nothing

Correct Answer: b)

11. When the margin risk ratio (total assets/total debts) of your margin wallet reaches liquidation risk ratio, which one of the following best describes what will happen?

a) When your margin wallet is under liquidation, you will not be able to trade with this wallet.

The system will automatically sell your assets to repay your debts.

c) You will be charged a liquidation clearance fee according to the amount of assets being liquidated.

d) All of the above.

Correct Answer: d)

12. 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?

a) The Liquidation Clearance Fee is a fixed value for each liquidation.

b) 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”.

c) 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.

Correct Answer: c)

Final Words:

Margin trading is a very useful feature offered by the world’s largest centralized cryptocurrency exchange. Margin Trading There are over 600 margin trading pairs to choose from From there you can save.

We have updated the latest Binance Margin Quiz Answers for the month of August 2022. And the Binance team will continue to update the post as new questions are added or modified to the quiz. So you can bookmark this page.

Shakil Ahamed

চেষ্টা করলে সফল অবশ্যই হওয়া যায়। চেষ্টা নতুন কিছু করার।

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