A beginner asked me about this the other day, so I thought I’d put together a quick explanation.
For Binance USDⓈ-M futures, the margin ratio = maintenance margin ÷ margin balance. Liquidation is triggered when the ratio reaches 100%.
You can think of the margin ratio as a progress bar toward liquidation: the closer it gets to 100%, the riskier things are. To bring it down, you can add margin or reduce your position.
Quick look: $BTC is currently at 77468.68, down 3.39% over 24 hours.
What topic would you like to learn about? Let me know in the comments.
#BTC
For Binance USDⓈ-M futures, the margin ratio = maintenance margin ÷ margin balance. Liquidation is triggered when the ratio reaches 100%.
You can think of the margin ratio as a progress bar toward liquidation: the closer it gets to 100%, the riskier things are. To bring it down, you can add margin or reduce your position.
Quick look: $BTC is currently at 77468.68, down 3.39% over 24 hours.
What topic would you like to learn about? Let me know in the comments.
#BTC