{"id":628,"date":"2024-02-07T14:07:47","date_gmt":"2024-02-07T05:07:47","guid":{"rendered":"https:\/\/hotnspicytaste.com\/?p=628"},"modified":"2026-01-09T01:10:26","modified_gmt":"2026-01-09T06:10:26","slug":"binance-margin-and-futures-liquidation","status":"publish","type":"post","link":"https:\/\/hotnspicytaste.com\/en\/binance-margin-and-futures-liquidation\/","title":{"rendered":"Binance Margin and Futures Liquidation Explained Simply! (Debt? Bankruptcy?)"},"content":{"rendered":"<p>Many people are curious about what happens when liquidation occurs in Binance margin trading. In this article, we will find out what happens when you are liquidated while doing futures or margin trading, and how much debt is incurred.<\/p>\n\n\n\n<p>For reference, liquidation is normal in both futures trading and margin trading. Closing a profit position or closing a loss position is both called liquidation.<\/p>\n\n\n\n<p>Forced liquidation occurs when the position can no longer be maintained.<\/p>\n\n\n\n<p><strong>Below, we will explain how to get the maximum fee discount on Binance.<\/strong><\/p>\n\n\n\n<a class=\"gb-text gb-text-4d04a662\" href=\"https:\/\/hotnspicytaste.com\/en\/%eb%b0%94%ec%9d%b4%eb%82%b8%ec%8a%a4-%ea%b0%80%ec%9e%85%eb%b0%a9%eb%b2%95%eb%aa%a8%eb%b0%94%ec%9d%bc-pc-1%eb%b6%84-%ec%a0%95%eb%a6%ac\/\" target=\"_blank\" rel=\"noopener\">\ud83d\udcb0 Binance Taker Fee Free, 60% Market Fee Discount Method<\/a>\n\n\n\n<p><\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_83 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewbox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewbox=\"0 0 24 24\" version=\"1.2\" baseprofile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/hotnspicytaste.com\/en\/binance-margin-and-futures-liquidation\/#%EB%B0%94%EC%9D%B4%EB%82%B8%EC%8A%A4_%EB%A7%88%EC%A7%84%EA%B1%B0%EB%9E%98%EB%9E%80\" >What is Binance Margin Trading?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/hotnspicytaste.com\/en\/binance-margin-and-futures-liquidation\/#%EB%B0%94%EC%9D%B4%EB%82%B8%EC%8A%A4_%EC%84%A0%EB%AC%BC%EA%B1%B0%EB%9E%98%EB%9E%80\" >What is Binance Futures Trading?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/hotnspicytaste.com\/en\/binance-margin-and-futures-liquidation\/#%EB%B0%94%EC%9D%B4%EB%82%B8%EC%8A%A4_%EC%84%A0%EB%AC%BC_%EB%A7%88%EC%A7%84_%EC%B2%AD%EC%82%B0_%EB%8B%B9%ED%95%98%EB%A9%B4_%EC%83%9D%EA%B8%B0%EB%8A%94_%EC%9D%BC\" >What Happens When Liquidation Occurs in Binance Futures or Margin Trading<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/hotnspicytaste.com\/en\/binance-margin-and-futures-liquidation\/#%EC%88%98%EC%9D%B5%EC%9D%B4_%EB%82%98%EA%B3%A0_%EC%9E%88%EB%8A%94_%EA%B2%BD%EC%9A%B0_%EC%B2%AD%EC%82%B0\" >Liquidation When Incurring a Profit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/hotnspicytaste.com\/en\/binance-margin-and-futures-liquidation\/#%EC%86%90%EC%8B%A4%EC%9D%B4_%EB%82%98%EA%B3%A0_%EC%9E%88%EB%8A%94_%EA%B2%BD%EC%9A%B0_%EC%B2%AD%EC%82%B0\" >Liquidation When Incurring a Loss<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/hotnspicytaste.com\/en\/binance-margin-and-futures-liquidation\/#%EB%B0%94%EC%9D%B4%EB%82%B8%EC%8A%A4_%EB%A7%88%EC%A7%84_%EB%B9%9A\" >Binance Margin Debt?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/hotnspicytaste.com\/en\/binance-margin-and-futures-liquidation\/#%EB%B0%94%EC%9D%B4%EB%82%B8%EC%8A%A4_%EB%A7%88%EC%A7%84_%EC%9D%B4%EC%9E%90_%EB%B0%8F_%EC%88%98%EC%88%98%EB%A3%8C\" >Binance Margin Interest and Fees<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/hotnspicytaste.com\/en\/binance-margin-and-futures-liquidation\/#%EB%B0%94%EC%9D%B4%EB%82%B8%EC%8A%A4_%EC%82%AC%EC%9A%A9%EB%B2%95\" >Binance Usage Guide<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%EB%B0%94%EC%9D%B4%EB%82%B8%EC%8A%A4_%EB%A7%88%EC%A7%84%EA%B1%B0%EB%9E%98%EB%9E%80\"><\/span>What is Binance Margin Trading?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>First, you need to know the meaning of Binance margin.<\/p>\n\n\n\n<p>Margin trading is a method of futures trading using coins borrowed from a third party. However, short positions are not possible in margin trading. In other words, you can think of it as simply borrowing money for investment (\ube5a\ud22c - investment with debt) in spot trading.<\/p>\n\n\n\n<p>Because the funds are borrowed from a third party, interest is incurred in addition to the fee, and the profit or loss is characterized by being in the form of a coin.<\/p>\n\n\n\n<p>For detailed differences between Binance margin and futures, please refer to the information written <a href=\"https:\/\/hotnspicytaste.com\/en\/%eb%b0%94%ec%9d%b4%eb%82%b8%ec%8a%a4-%eb%a7%88%ec%a7%84-%ec%84%a0%eb%ac%bc-%ec%b0%a8%ec%9d%b4\/\" data-type=\"post\" data-id=\"187\">here<\/a>.<\/p>\n\n\n\n<p>For the margin trading method, please refer to <a href=\"https:\/\/hotnspicytaste.com\/en\/2024-%eb%b0%94%ec%9d%b4%eb%82%b8%ec%8a%a4-%eb%a7%88%ec%a7%84%ea%b1%b0%eb%9e%98-%eb%b0%a9%eb%b2%95-%ec%95%8c%ec%95%84%eb%b3%b4%ea%b8%b0-%ec%89%bd%ea%b3%a0-%eb%b9%a0%eb%a5%b4%ea%b2%8c\/\" title=\"How to Quickly and Easily Learn the 2025 Binance Margin Trading Method\">the article on Binance Margin Trading Method.<\/a>.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%EB%B0%94%EC%9D%B4%EB%82%B8%EC%8A%A4_%EC%84%A0%EB%AC%BC%EA%B1%B0%EB%9E%98%EB%9E%80\"><\/span>What is Binance Futures Trading?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Binance futures trading is an investment method where you predict the future price of cryptocurrencies like Bitcoin or Ethereum and buy (long) or sell (short).<\/p>\n\n\n\n<p>You can trade without actually holding the coin, and you can manage large positions with small capital by utilizing leverage (up to 125x).<\/p>\n\n\n\n<p>You gain profit from a long position when the price rises and a short position when it falls, but if the direction is wrong, the loss can also be significant, making risk management important.<\/p>\n\n\n\n<p>For the futures trading method, please refer to <a href=\"https:\/\/hotnspicytaste.com\/en\/%eb%b0%94%ec%9d%b4%eb%82%b8%ec%8a%a4-%ec%84%a0%eb%ac%bc-%ea%b1%b0%eb%9e%98-%ec%99%84%eb%b2%bd-%ea%b0%80%ec%9d%b4%eb%93%9c-%ec%b4%88%eb%b3%b4%ec%9e%90%eb%8f%84-%ec%89%bd%ea%b2%8c-%eb%94%b0%eb%9d%bc\/\" title=\"Binance Futures Trading Complete Guide, 7 Practical Steps for Beginners to Follow Easily\">the article on Binance Futures Trading Method<\/a>.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%EB%B0%94%EC%9D%B4%EB%82%B8%EC%8A%A4_%EC%84%A0%EB%AC%BC_%EB%A7%88%EC%A7%84_%EC%B2%AD%EC%82%B0_%EB%8B%B9%ED%95%98%EB%A9%B4_%EC%83%9D%EA%B8%B0%EB%8A%94_%EC%9D%BC\"><\/span>What Happens When Liquidation Occurs in Binance Futures or Margin Trading<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You might think negatively due to the nuance of the word 'liquidation,' but in fact, 'liquidation' in crypto means the closing of a position.<\/p>\n\n\n\n<p>The cases where a Binance margin position is closed can be broadly divided into two: when a profit is being made and when a loss is being incurred.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%EC%88%98%EC%9D%B5%EC%9D%B4_%EB%82%98%EA%B3%A0_%EC%9E%88%EB%8A%94_%EA%B2%BD%EC%9A%B0_%EC%B2%AD%EC%82%B0\"><\/span>Liquidation When Incurring a Profit<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img decoding=\"async\" width=\"939\" height=\"455\" data-src=\"https:\/\/hotnspicytaste.com\/wp-content\/uploads\/2024\/02\/image-57.png\" alt=\"Binance Margin Liquidation\" class=\"wp-image-629 lazyload\" title=\"\" data-srcset=\"https:\/\/hotnspicytaste.com\/wp-content\/uploads\/2024\/02\/image-57.png 939w, https:\/\/hotnspicytaste.com\/wp-content\/uploads\/2024\/02\/image-57-300x145.png 300w, https:\/\/hotnspicytaste.com\/wp-content\/uploads\/2024\/02\/image-57-768x372.png 768w\" data-sizes=\"(max-width: 939px) 100vw, 939px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 939px; --smush-placeholder-aspect-ratio: 939\/455;\" \/><\/figure>\n<\/div>\n\n\n<p>Needless to say, you take the confirmed profit. It is a good situation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%EC%86%90%EC%8B%A4%EC%9D%B4_%EB%82%98%EA%B3%A0_%EC%9E%88%EB%8A%94_%EA%B2%BD%EC%9A%B0_%EC%B2%AD%EC%82%B0\"><\/span>Liquidation When Incurring a Loss<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img decoding=\"async\" width=\"287\" height=\"593\" data-src=\"https:\/\/hotnspicytaste.com\/wp-content\/uploads\/2024\/02\/image-60.png\" alt=\"Binance Margin Liquidation\" class=\"wp-image-632 lazyload\" title=\"\" data-srcset=\"https:\/\/hotnspicytaste.com\/wp-content\/uploads\/2024\/02\/image-60.png 287w, https:\/\/hotnspicytaste.com\/wp-content\/uploads\/2024\/02\/image-60-145x300.png 145w\" data-sizes=\"(max-width: 287px) 100vw, 287px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 287px; --smush-placeholder-aspect-ratio: 287\/593;\" \/><\/figure>\n<\/div>\n\n\n<p>Most people will be curious about this case.<\/p>\n\n\n\n<p>In the case of crypto margin trading, the risk is considered high due to the nature of borrowing + leverage.<\/p>\n\n\n\n<p>For example, let's consider margin trading a crypto asset worth 10,000 USD with 5x leverage. Then your actual capital would be 2,000 USD<\/p>\n\n\n\n<p>In this case, if the price rises by 20%, you gain 100% of 10,000 USD, meaning an additional 10,000 USD profit. However, if the price drops by 20%, you lose all your money. Furthermore, if a 25% loss occurs, a negative loss (debt) will occur.<\/p>\n\n\n\n<p>Therefore, the Binance exchange automatically forces liquidation when your funds reach 0 KRW to prevent your balance from going negative.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%EB%B0%94%EC%9D%B4%EB%82%B8%EC%8A%A4_%EB%A7%88%EC%A7%84_%EB%B9%9A\"><\/span>Binance Margin Debt?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>So, many people wonder if you incur debt when you do Binance margin trading.<\/p>\n\n\n\n<p>To conclude, debt is not incurred. This is because the exchange side forcibly liquidates the position before debt can arise when losses are being incurred.<\/p>\n\n\n\n<p>If you trade using borrowed money (outside the exchange's system), debt may arise.<\/p>\n\n\n\n<p>This aspect is clearly a benefit of crypto exchanges over securities firms.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%EB%B0%94%EC%9D%B4%EB%82%B8%EC%8A%A4_%EB%A7%88%EC%A7%84_%EC%9D%B4%EC%9E%90_%EB%B0%8F_%EC%88%98%EC%88%98%EB%A3%8C\"><\/span>Binance Margin Interest and Fees<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Binance margin interest is a different concept from debt. As mentioned earlier, interest arises because money is borrowed from a third party due to the nature of margin trading.<\/p>\n\n\n\n<p>Therefore, the Binance margin fee is the sum of interest + trading fees, which is generally higher than futures or spot trading fees.<\/p>\n\n\n\n<p>If you are curious about the specific amount of Binance margin interest and fees, refer to the article below.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/hotnspicytaste.com\/en\/2024-%eb%b0%94%ec%9d%b4%eb%82%b8%ec%8a%a4-%ed%98%84%eb%ac%bc-%ec%88%98%ec%88%98%eb%a3%8c-%ec%b4%9d%ec%a0%95%eb%a6%ac-%ed%95%a0%ec%9d%b8%eb%b0%a9%eb%b2%95-%ed%8f%ac%ed%95%a8\/\" title=\"\">Binance Margin Fee and Interest Rate?<\/a><\/li>\n<\/ul>\n\n\n\n<p>Below, we will explain the futures trading fees.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/comfortable-pair-fa9.notion.site\/55-4-2911bcd527b380c5aceee2df89848e07?source=copy_link\" target=\"_blank\" rel=\"noopener\" title=\"\">Binance Futures Trading Fee<\/a><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%EB%B0%94%EC%9D%B4%EB%82%B8%EC%8A%A4_%EC%82%AC%EC%9A%A9%EB%B2%95\"><\/span>Binance Usage Guide<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>We have gathered all the previously compiled exchange usage guides and Q&amp;A into a roadmap for easy viewing. Please bookmark and use it.<\/p>\n\n\n\n<a class=\"gb-text gb-text-7daed3e6\" href=\"https:\/\/comfortable-pair-fa9.notion.site\/28b1bcd527b381d0adaff5f9329b2ade?source=copy_link\" target=\"_blank\" rel=\"noopener\">[Check Crypto Exchange Usage Guide]<\/a>","protected":false},"excerpt":{"rendered":"<p>Many people are curious about what happens when liquidation occurs in Binance margin trading. In this article, we will find out what happens when you are liquidated while doing futures or margin trading, and how much debt is incurred. For reference, liquidation is normal in both futures trading and margin trading. Closing a profit position or closing a loss position is both called liquidation. Forced liquidation occurs when the position can no longer be maintained... <a title=\"Binance Margin and Futures Liquidation Explained Simply! (Debt? Bankruptcy?)\" class=\"read-more\" href=\"https:\/\/hotnspicytaste.com\/en\/binance-margin-and-futures-liquidation\/\" aria-label=\"Read more about 2026 \ubc14\uc774\ub0b8\uc2a4 \ub9c8\uc9c4 \uc120\ubb3c \uccad\uc0b0 \ud55c\ubc29\uc5d0 \uc815\ub9ac! (\ube5a? \ud30c\uc0b0?)\">Read more<\/a><\/p>","protected":false},"author":2,"featured_media":2574,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[85],"class_list":["post-628","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-binance-exchange-usage-guide","tag-85"],"_links":{"self":[{"href":"https:\/\/hotnspicytaste.com\/en\/wp-json\/wp\/v2\/posts\/628","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hotnspicytaste.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hotnspicytaste.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hotnspicytaste.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hotnspicytaste.com\/en\/wp-json\/wp\/v2\/comments?post=628"}],"version-history":[{"count":9,"href":"https:\/\/hotnspicytaste.com\/en\/wp-json\/wp\/v2\/posts\/628\/revisions"}],"predecessor-version":[{"id":3813,"href":"https:\/\/hotnspicytaste.com\/en\/wp-json\/wp\/v2\/posts\/628\/revisions\/3813"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/hotnspicytaste.com\/en\/wp-json\/wp\/v2\/media\/2574"}],"wp:attachment":[{"href":"https:\/\/hotnspicytaste.com\/en\/wp-json\/wp\/v2\/media?parent=628"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hotnspicytaste.com\/en\/wp-json\/wp\/v2\/categories?post=628"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hotnspicytaste.com\/en\/wp-json\/wp\/v2\/tags?post=628"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}