Binance, Exchanges

What Is Cross Margin in Binance?

Binance is a cryptocurrency exchange that provides a platform for trading various cryptocurrencies. As of January 2018, Binance was the largest cryptocurrency exchange in the world in terms of trading volume.

What is Cross Margin?

The term “cross margin” refers to the use of funds from multiple sources to margin trade on a single platform. In other words, it allows traders to use funds from different accounts to cover the margin requirements for a trade.

This is different from traditional margin trading, where traders can only use the funds in their account to cover the margin requirements.

NOTE: WARNING: Trading on a Cross Margin account is a high-risk activity and should only be attempted by experienced traders. Trading with Cross Margin involves taking on significant leverage, which can magnify losses as well as gains. It is important to remember that trading with leverage involves higher risk and should be handled with caution.

Cross margin can be used in both spot and derivative trading. In spot trading, cross margin allows traders to use funds from different accounts to trade on a single platform.

This is useful for traders who want to trade with multiple accounts or who want to use different strategies for each account. .

In derivative trading, cross margin allows traders to use futures contracts from different exchanges to cover the margin requirements for a single position. This is useful for traders who want to hedge their positions or who want to trade on multiple exchanges.

Cross margin is a useful tool for both spot and derivative traders. It allows traders to use funds from multiple sources to cover the margin requirements for a trade.

This is different from traditional margin trading, where traders can only use the funds in their account to cover the margin requirements.

Previous ArticleNext Article