Here’s the Margin Quiz Answer Key. PS: * = Answer
- Binance Margin includes cross margin and isolated margin. Which one of the following sentences does not describe their difference?
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.
*They have different interest rates
They have different maximum leverage ratio
They support different borrowables
- Margin level is used to evaluate the risk level of your margin account. How is margin level calculated?
*Margin level = total assets value/(total borrowed value + total accrued interest value)
margin level = total assets value/(total borrowed value – total accrued interest value)
margin level = total borrowed value/ total accrued interest value
- Which one of the following events will force you to liquidate ?
*The margin level has reached the liquidation level
The current margin level has reached the initial margin level
The total debt is lower than the total interest
- How often is margin interest calculated?
*Hourly, at the time of borrowing
- Do you need to borrow manually before trading?
*No, you can use the “auto borrow” function on the trading page.
- Which one of the following factors does not affect your maximum borrowing limit?
*The borrowing period
The amount of fund in your margin account
Your VIP level
The system borrowing limit
Your individual borrowing limit
- Which one of the following sentences is correct regarding your borrowing interest rate?
*The borrowing interest rate will change with the market, and the system will notify you when it changes
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?
*Binance insurance funds will write off your debts
You are required to repay the debts yourself
- How to pay the interest fee with BNB in cross margin
*Transfer BNB to cross margin account and repay manually
Repay with the loan
- When you receive a margin call notification, what should you do?
Borrow more funds to hedge the risk
*Reduce your position to repay the debt or add more collateral into the margin account
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