Binance Exchange Margin Quiz Answers 2022

Binance Margin Quiz Answers (August 2022)

Looking to start crypto trading with leverage on the Binance exchange? Before you can start margin trading on Binance, you have to pass the Binance Margin quiz. This is an assessment that tests your knowledge on trading with margin, its associated risks, and the relevant measures you should take for your own financial security.

Until you pass the margin trading quiz on Binance, you will not be able to trade any funds using this functionality. Whilst the test is quite straightforward, this requirement creates a problem for many users who want to start benefiting from the opportunity, without any delay.

So, let’s jump in and get the Binance Margin Quiz answer for 2022 and start trading margin.

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Binance Margin Quiz Answers for August 2022

Below we have put together the latest answers to the 12 questions for the Binance margin quiz. Once the test has been completed you will be able to start trading with leverage.

Please beware, trading cryptocurrency, especially with margin is extremely risky.

Binance Margin Quiz Answer

Binance Margin Quiz Answer 1: Margin & Isolated Margin

Binance Margin Quiz Question 1: Binance Margin includes cross margin and isolated margin. Which one of the following sentences does not describe their difference?

Options:

  • 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

Binance Margin Quiz Answer 1:

They have different interest rates

Binance Margin Quiz Answer 1

Binance Margin Quiz Answer 2: How is Margin Level Calculated?

Binance Margin Quiz Question 2: Margin level is used to evaluate the risk level of your margin account. How is the margin level calculated?

Options:

  • 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 a different maximum leverage ratio
  • They support different borrowables

Binance Margin Quiz Answer 2:

They have different interest rates

Binance Margin Quiz Answer 2

Binance Margin Quiz Answer 3: Events that Will Force Liquidation

Binance Margin Quiz Question 3: Which one of the following events will force you to liquidate?

Options:

  • 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

Binance Margin Quiz Answer 3:

The margin level has reached the liquidation level

Binance Margin Quiz Answer 3

Binance Margin Quiz Answer 4: Margin Interest Calculations

Binance Margin Quiz Question 4: How often is margin interest calculated?

Options:

  • Hourly, at the time of borrowing
  • Daily
  • Monthly

Binance Margin Quiz Answer 4:

Hourly, at the time of borrowing

Binance Margin Quiz Answer 4

5Binance Margin Quiz Answer 5: Manual Borrowing

Binance Margin Quiz Question 5: Do you need to borrow manually before trading?

Options:

  • Yes
  • No, you can use the “Auto Borrow” function on the trading page

Binance Margin Quiz Answer 5:

No, you can use the “Auto Borrow” function on the trading page

Binance Margin Quiz Answer 5

Binance Margin Quiz Answer 6: Maximum Borrowing

Binance Margin Quiz Question 6: Which one of the following factors does not affect your maximum borrowing limit?

Options:

  • The borrowing period
  • The amount of funds in your margin account
  • Your VIP level
  • The system borrowing limit
  • Your individual borrowing limit

Binance Margin Quiz Answer 6:

The borrowing period

Binance Margin Quiz Answer 6

Binance Margin Quiz Answer 7: Borrowing Interest Rate

Binance Margin Quiz Question 7: Which one of the following sentences is correct regarding your borrowing interest rate?

Options:

  • 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 afterwards

Binance Margin Quiz Answer 7:

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

Binance Margin Quiz Answer 7

Binance Margin Quiz Answer 8: Repaying Debts

Binance Margin Quiz Question 8: In the event of liquidation, how to repay your debts?

Options:

  • Binance insurance funds will write off your debts
  • You are required to repay the debts yourself

Binance Margin Quiz Answer 8:

Binance insurance funds will write off your debts

Binance Margin Quiz Answer 8

Binance Margin Quiz Answer 9: Pay Interest Fees

Binance Margin Quiz Question 9: How to pay the interest fee with BNB in cross margin?

Options:

  • Transfer BNB to cross margin account and repay manually
  • Repay with the loan

Binance Margin Quiz Answer 9:

Transfer BNB to cross margin account and repay manually

Binance Margin Quiz Answer 9

Binance Margin Quiz Answer 10: Margin Call Notifications

Binance Margin Quiz Question 10: When you receive a margin call notification, what should you do?

Option:

  • Borrow more funds to hedge the risk
  • Reduce your position to repay the debt or add more collateral into the margin account
  • Do nothing

Binance Margin Quiz Answer 10:

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

Binance Margin Quiz Answer 10

Binance Margin Quiz Answer 11: Forced Liquidation

Binance Margin Quiz Question 11: 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?

Options:

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

Binance Margin Quiz Answer 11:

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.

Binance Margin Quiz Answer 11

Binance Margin Quiz Answer 12: Margin Risk Ratio

Binance Margin Quiz Question 12: 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?

Options:

  • 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
  • You will be charged a liquidation clearance fee according to the amount of assets being liquidated
  • All of the above

Binance Margin Quiz Answer 12:

All of the above

Binance Margin Quiz Answer 12

What is Binance Margin Trading?

Binance Margin trading is a method of trading using funds provided by a third party. When compared to regular trading accounts, margin accounts allow traders to access greater sums of capital. Allowing traders to leverage their positions and amplify their trading results.

In traditional markets, the borrowed funds are provided by a broker. In cryptocurrency trading, funds are often provided by other traders, who earn interest based on market demand for margin funds.

Binance Margin Trading

Conclusion

Hopefully, you have now completed the margin quiz using the above Binance Margin Quiz answers and will be able to start trading with margin on the Binance exchange.

Margin trading cryptocurrency isn’t for beginners and is very risky and should be used with caution.

Other Crypto Quizzes

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