Binance Margin Quiz Answers – May 2022 [LATEST]

Binance Margin Quiz Answers for May 2022: When you want to do margin trading in Binance for the first time, you need to Answer the Quiz correctly to start the margin trading. There are 12 Questions in the Quiz and no time constraint to answer these questions. All the questions must be answers correctly. After that you will be allowed to start margin trading.

Each and every new user in Binance platform must pass the one time quiz to do margin trading. This applies to both Cross & isolated margin trading. So, in this post, we will be providing latest & updated Binance Margin Quiz Answers for Trading in Cross & Isolated Margin.

Check Here Latest Binance Futures Quiz Answers 2022.

Binance Margin Quiz Answers May 2022

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

a) 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.

b) They have different interest rates.

c) They have different maximum leverage ratio.

d) They support different borrowables.

Correct Answer: b)

question number 1 binance quiz answer margin

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

a) Margin level = total assets value/(total borrowed value + total accrued interest value)

b) margin level = total assets value/(total borrowed value – total accrued interest value)

c) margin level = total borrowed value/ total accrued interest value

Correct Answer: a)

binance margin quiz answer question number 2

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3. Which one of the following events will force you to liquidate ?

a) The margin level has reached the liquidation level

b) The current margin level has reached the initial margin level

c) The total debt is lower than the total interest

Correct Answer: a)

question number 3 answer

4. How often is margin interest calculated?

a) Hourly, at the time of borrowing

b) Daily

c) Monthly.

Correct Answer: a)

question number 4 answer

5. Do you need to borrow manually before trading?

a) Yes

b) No, you can use the “auto borrow” function on the trading page.

Correct Answer: b)

question number 5 answer

6. Which one of the following factors does not affect your maximum borrowing limit?

a) The borrowing period

b) The amount of fund in your margin account

c) Your VIP level

d) The system borrowing limit

e) Your individual borrowing limit

Correct Answer: a)

question number 6 answer

7. Which one of the following sentences is correct regarding your borrowing interest rate?

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

b) The borrowing interest rate will be determined at the time of borrowing, no changes afterward

Correct Answer: a)

question number 7 answer

8. In the event of liquidation, how to repay your debts?

a) Binance insurance funds will write off your debts

b) You are required to repay the debts yourself

Correct Answer: a)

question number 8 answer

9. How to pay the interest fee with BNB in cross margin

a) Transfer BNB to cross margin account and repay manually

b) Repay with the loan

Correct Answer: a)

question number 9 answer

10. When you receive a margin call notification, what should you do?

a) Borrow more funds to hedge the risk

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

c) Do nothing

Correct Answer: b)

question number 10 answer

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?

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

b) 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”.

c) 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.

Correct Answer: c)

question number 11 answer

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?

a) 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.

c) You will be charged a liquidation clearance fee according to the amount of assets being liquidated.

d) All of the above.

Correct Answer: d)

question number 12 answer

How to Answer the Binance Quiz Questions for Margin Trading?

Step 1: When you will do Margin Trading for the first time, you will be prompted to answer the quiz. A pop up will appear in your screen which you ask you to Start Binance Margin Quiz. Click on the “Start the Quiz” button.

binance quiz starting procedure for margin

Step 2: The Quiz questions will be shown in the screen. There is no time limit. Select the correct answer as given above by clicking on the option.

Step 3: After selecting all the correct answers, click on “Prompt Answers

Step 4: After clicking on the button, you will be shown that “All Answers are correct“.

Step 5: Click on “Success” button to close the window and now you will be ready to start margin trading.

Final Words:

Margin trading is a very useful feature provided by the World’s Largest Centralized crypto currency exchange. There are almost over 600 margin trading pairs to choose from.

Upto 10X leverage is possible in Margin Trading. There are two categories of pairs in margin trading – Cross & Isolated.

To start margin trading, just open the Binance Platform in Mobile App or Desktop and answer the Binance Margin Quizzes. Then transfer your fund from Trading / Fund wallet to Margin Wallet and start doing margin trade.

We have updated the Latest Binance Margin Quiz Answers for May 2022 and will keep continuing to update the post as soon as the new questions are added or modified in the Quiz by Binance Team.

However, the Margin trading is risky and you must know all the rules before you start. Ask your financial advisor for any help.

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