Margin Ratio.
The gauge that prevents your liquidation.
If you trade in Futures, the Margin Ratio is the most critical indicator on your screen.
Don't just look at PNL; this percentage tells you how close you are to Binance liquidating your positions due to insufficient collateral.
How to read it correctly?
The ratio measures your maintenance margin against your account's net balance.
Green (Low):
Your account is healthy and has enough cushion to withstand adverse market movements.
Yellow (Medium):
Risk increases significantly.
You must review your Stop Losses urgently.
Red (Critical):
If the ratio reaches 100%, liquidation happens immediately.
To reduce it, there are only two options: add more capital as margin or close part of your open positions to free up collateral.
Ignoring this number is like driving without checking the fuel gauge.
Question:
Do you check your Margin Ratio before opening a new position?
If you like what I share, comment or share.
If you follow me, I'll follow you back. 👉
Trade directly from this post 👇
$BNB
$BTC
$XRP
Education is your best investment.
The gauge that prevents your liquidation.
If you trade in Futures, the Margin Ratio is the most critical indicator on your screen.
Don't just look at PNL; this percentage tells you how close you are to Binance liquidating your positions due to insufficient collateral.
How to read it correctly?
The ratio measures your maintenance margin against your account's net balance.
Green (Low):
Your account is healthy and has enough cushion to withstand adverse market movements.
Yellow (Medium):
Risk increases significantly.
You must review your Stop Losses urgently.
Red (Critical):
If the ratio reaches 100%, liquidation happens immediately.
To reduce it, there are only two options: add more capital as margin or close part of your open positions to free up collateral.
Ignoring this number is like driving without checking the fuel gauge.
Question:
Do you check your Margin Ratio before opening a new position?
If you like what I share, comment or share.
If you follow me, I'll follow you back. 👉
Trade directly from this post 👇
$BNB
$BTC
$XRP
Education is your best investment.
