Binance Margin Trading – The 10 STEP Beginners Guide

By Krisha A / December 9, 2019

In this Binance Margin Trading 10 Step Guide, Krisha goes over the following:
Binance Margin Account Setup; Deposits & Withdrawals; Margin Level & Liquidations; Binance Long Trade; How to Short on Binance & OCO Order Setup

Binance Margin Trading has opened a new window of opportunity to traders everywhere. Much of the allure of trading cryptocurrency stems from its price volatility. However, until recently, the average crypto trader could leverage trade only the top tier Cryptocurrencies (BTC, ETH, XRP etc). 

Binance Margin Trading is a game changer as it now allows leverage trading on a series of other high volatility Altcoins besides the status quo top 5 Cryptocurrencies in the market. Traders can now Margin Short Altcoins in downtrends, and Margin Long Altcoins in Uptrends. 

Binance Margin Trading 10 STEP YouTube Tutorial Guide:

STEP 1: How to set-up your Binance Margin Trading Account?

STEP 2: How to Deposit and Withdraw margin into your Binance account?

STEP 3: What is the max leverage on Binance margin exchange? 

**UPDATE: Binance recently increased their MAX Leverage to 5X on their margin trading pairs**

STEP 4: How much do you pay in: Binance Margin Trading Fess, Binance Margin Interest & Liquidation fees?

STEP 5: What is the Binance Margin Level? and how to read it?

STEP 6: How to margin LONG (buy) altcoins on Binance?

STEP 7: How to SHORT (selling) on Binance?

Not sure what Short Selling is?
 
Here's a beginners guide to
"What is a short sell?", and "What is a short squeeze?"

STEP 8: What are Binance OCO Orders?

Setting tradestops and take profit on your Binance margin trade is not the most intuitive process. Unlike other margin exchanges, traders can only "reserve" their tokens/coins for any one given order on the binance exchange. Example: If you have a LONG trade on for 10 BTC (quantity), you can either only 'reserve' your 10 BTC on a Take Profit order, OR 'reserve' it on a Stop Loss order. You cannot have both on at once. However, Binance has managed to solve this issue with OCO Orders.

OCO is an abbreviation for "One Cancels the Other". When broken down simply, an OCO order acts as a Stop loss AND a Take profit order. Wherein, if one gets triggered, the other gets canceled - It is the Binance equivalent of setting a stoploss, and a take profit on any one particular margin trade. That way you're taking profits if the trade goes in your favour, and stopping your losses if it doesn't. 

Note there is only one position size field in the OCO order. Hence, the size remains the same for the take profit, and stoploss. 

STEP 9: How to set Binance Margin LONG Stoploss & Take Profit (Using OCO)

Taking a Margin LONG Position would imply that a trader has bought X amount of a cryptocurrency in anticipation for prices to go higher. Applying the logic of, "Buy low, Sell High".  

So it implies that he/she would set a Take Profit order at a price GREATER THAN what he/she bought it for. And would set a Stop Loss order at a price LOWER THAN what he/she bought it for. 

Either way, the action being executed by the trader is a SELL action. Irrespective if the trade is executed at a profit or a loss.

Hence on a Margin LONG Position, your OCO order needs to be executed on the Sell Side in the order box

The first field on the order block is "LIMIT" Price : This is the price that you want to "Take Profit" at. Hence, the "LIMIT Price" has to be higher than your entry price.

The second field on the order block is your "Stop-Limit": This is the price that you want to "Stop Your Loss" at. 
 
1) A "Stop" price in expression is the price point a trader says, "enough is enough. I need to cut my losses". Hence, your STOP Price has to be lower than your entry price. This stop price is also known as the the "trigger price" - It is only when THIS price gets "triggered" does you "Limit" Price (below) get onto the order book. 

2) But now the question is "Where do you cut your losses? at what price do you sell?" - This price is going to be your
"Limit" Price. Your "Limit" Price also has to be lower than your entry price.

‚Äč3) The "Amount" is how much you choose to set the order for. However NOTE that your take profit and your stop loss will be executed for THIS same amount.

**Binance OCO YouTube Video Tutorial Coming Soon**

STEP 10: How to set Binance SHORT SELL Stop Loss & Take Profit (Using OCO)

Taking a Margin SHORT Sell Position would imply that a trader has sold X amount of a cryptocurrency in anticipation for prices to go lower. So it implies that he/she would set a Take Profit order at a price LOWER THAN what he/she sold it for. And would set a Stop Loss order at a price GREATER THAN what he/she sold it for. 

Either way, the action being executed by the trader is a BUY action. Irrespective if the trade is executed at a profit or a loss.

Hence on a Margin SHORT Positions, your OCO order needs to be executed on the Buy Side in the order box

The first field on the order block is "LIMIT " : This is the price that you want to "Take Profit" at. The LIMIT Price has to be LOWER than your entry price (you'll be buying back your crypto at a lower price than what you sold it for. cha-ching!)

The second field on the order block is your "STOP-LIMIT": This is the price that you want to "Stop Your Loss" at. 
 
1) The "Stop" price in expression is the price point a trader says, "enough is enough. I need to cut my losses". The Stop Price has to be GREATER than your entry price. This stop price is also known as the the "trigger price" - It is only when THIS price gets "triggered" does you "Limit" Price (below) get onto the order book. 

2) But now the question is "Where do you cut your losses? at what price do you Buy Back at?" - This price is going to be your
"Limit" Price. The "Limit" Price also has to be GREATER than your entry price.

3) The "Amount" is how much you choose to set the order for. However NOTE that your take profit and your stop loss will be executed for THIS same amount. 

**Binance OCO YouTube Video Tutorial Coming Soon**

About the author

Krisha A

  • Brian says:

    Good content, thanks.

  • sarina says:

    still waiting for the OCO tutorial thanks for the videos!
    also could you make a video of the difference of Future and Margin trading? Thanks!


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