What are Binance's cross-collateral and isolated margin accounts ?

[Clarissa]

Hello everyone,

I am new to Binance and I'm trying to understand their margin accounts. I was wondering if someone could explain to me the differences between their cross-collateral and isolated margin accounts.

I understand that margin trading involves borrowing funds from a broker to increase the size of a position, but I'm not sure how Binance's cross-collateral and isolated margin accounts work. Can anyone help me out?

I would also love to hear from experienced traders who have used these accounts before. What are the benefits and risks of using these accounts? What strategies should I consider when trading with these accounts?

Any advice would be greatly appreciated.

 

[cryptopress]

What is Binance's Cross-Collateral Account?

Binance's Cross-Collateral Account is a margin trading tool that allows users to use their crypto assets as collateral for margin trading. This account works by allowing users to borrow funds against their crypto assets, which can then be used to purchase additional assets or margin trade. The account is secured by a collateral ratio, which is the ratio of the total value of the collateral to the loan amount. If the collateral ratio falls below the required level, the account will be liquidated.

Keywords: Binance, Cross-Collateral Account, Margin Trading, Crypto Assets, Collateral Ratio, Liquidation

What is Binance's Isolated Margin Account?

Binance's Isolated Margin Account is a margin trading tool that allows users to borrow funds against their crypto assets. This account works by allowing users to borrow funds against their crypto assets, which can then be used to purchase additional assets or margin trade. The account is secured by a collateral ratio, which is the ratio of the total value of the collateral to the loan amount. Unlike the Cross-Collateral Account, the Isolated Margin Account allows users to set their own collateral ratio and leverage. If the collateral ratio falls below the required level, the account will be liquidated.