How do I calculate my margin ratio on Binance?

 How do I calculate my margin ratio on Binance?

To calculate your margin ratio on Binance, you can use the following formula:

Margin Ratio=Account Equity/Account Maintenance Margin​

Here’s what each term means:

• Account Maintenance Margin: The sum of the maintenance margin required for all open positions.
• Account Equity: The total balance in your account, including unrealized profits and losses.

For example, if you’re trading in the Multi-Assets Mode and have two contracts, BTCUSDT perpetual and ETHUSDC with 100x and 50x leverage respectively, your maintenance margin ratio will be 0.8% and 1% respectively.

Let’s say you have an account balance (equity) of $1,000 and a maintenance margin of $200. Your margin ratio would be calculated as:

Margin Ration=200/1000=0.2 or 20%

A lower margin ratio indicates a higher level of risk, as you’re closer to the liquidation point. If your margin ratio reaches 100%, it means your account equity is equal to the maintenance margin, and Binance will liquidate your positions.

Always monitor your margin ratio closely to manage your risk and avoid liquidation. Remember, trading with leverage can amplify both gains and losses, so it’s important to use it responsibly.

To calculate your margin ratio on Binance, you can use the following formula:

Margin Ratio=Account EquityAccount Maintenance Margin​

Here’s what each term means:

• Account Maintenance Margin: The sum of the maintenance margin required for all open positions.
• Account Equity: The total balance in your account, including unrealized profits and losses.

For example, if you’re trading in the Multi-Assets Mode and have two contracts, BTCUSDT perpetual and ETHUSDC with 100x and 50x leverage respectively, your maintenance margin ratio will be 0.8% and 1% respectively¹.

Let’s say you have an account balance (equity) of $1,000 and a maintenance margin of $200. Your margin ratio would be calculated as:

Margin Ratio=1000200​=0.2 or 20%

A lower margin ratio indicates a higher level of risk, as you’re closer to the liquidation point. If your margin ratio reaches 100%, it means your account equity is equal to the maintenance margin, and Binance will liquidate your positions¹.

Always monitor your margin ratio closely to manage your risk and avoid liquidation. Remember, trading with leverage can amplify both gains and losses, so it’s important to use it responsibly.r margin ratio on Binance, you can use the following formula:

$$$$Margin Ratio=Account Maintenance MarginAccount Equity

Here’s what each term means:

• Account Maintenance Margin: The sum of the maintenance margin required for all open positions.
• Account Equity: The total balance in your account, including unrealized profits and losses.

For example, if you’re trading in the Multi-Assets Mode and have two contracts, BTCUSDT perpetual and ETHUSDC with 100x and 50x leverage respectively, your maintenance margin ratio will be 0.8% and 1% respectively1.

Let’s say you have an account balance (equity) of $1,000 and a maintenance margin of $200. Your margin ratio would be calculated as:

$$$$Margin Ratio=2001000=0.2 or 20%

A lower margin ratio indicates a higher level of risk, as you’re closer to the liquidation point. If your margin ratio reaches 100%, it means your account equity is equal to the maintenance margin, and Binance will liquidate your positions1.

Always monitor your margin ratio closely to manage your risk and avoid liquidation. Remember, trading with leverage can amplify both gains and losses, so it’s important to use it responsibly.