Getting Started with Leverage Trading on Binance
To begin trading with leverage on Binance, follow these steps after logging into your account:
- Navigate to Your Profile
Hover over the profile icon in the top-right corner. A dropdown will display the first two characters of your registered email address. Click your email to access the account dashboard. - Understand Leverage Trading
If you're new to leveraged trading, we recommend reviewing our guide "What Is Leverage Trading?" before proceeding. Account Requirements
Ensure you've completed:- Identity verification (KYC)
- 2FA activation (two-factor authentication)
- Confirmed your country isn't restricted
Enable Leverage Account
- Go to "Balance Details" → Select "Leverage Trading"
- Read the risk disclaimer carefully
- Click "Open Leverage Account"
Funding Your Leverage Wallet
Transfer Assets
- Navigate to Wallet → Leverage Trading → Click "Transfer"
- Select token (e.g., BNB) and amount
- Confirm transaction
Borrowing Funds
Binance offers a 3:1 collateral ratio (3x leverage). For example:- Collateral: 1 BTC → Max borrowable: 2 BTC
- Select token/amount → Click "Confirm Borrow"
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Key Metrics to Monitor
| Metric | Description | Threshold |
|---|---|---|
| Leverage Level | Risk assessment based on collateral vs. debt | Warning at 1.3 |
| Liquidation Price | Automatic asset sale if level drops to 1.1 | Critical at 1.1 |
Risk Calculation: Risk Rate = Total Asset Value / (Total Borrowed + Accrued Interest)
Executing Trades & Repaying Loans
Placing Orders
- Select "Leverage Trading" on the exchange interface
- Use limit/market/stop-loss orders as needed
Repaying Debt
- Go to "Borrow/Repay" → Choose "Repay"
- Pay principal + interest (in same cryptocurrency)
FAQs
Q: How often is interest charged?
A: Interest updates hourly. Rates vary by token—check Binance's fee schedule.
Q: Can I change collateral after borrowing?
A: Yes, but withdrawing funds increases risk levels. Monitor thresholds closely.
Q: What happens during liquidation?
A: Assets are sold at market price to repay debt, plus additional fees.
Q: Are transfers between wallets free?
A: Yes, but reducing collateral raises liquidation risks.
Real-World Example: BNB Long Position
Scenario:
- Alice deposits 1 BTC as collateral → Borrows 0.5 BTC (2x leverage)
- Buys BNB at $300 → Sells at $350
- Repays 0.5 BTC + interest → Keeps profit
Risk Warning:
If BNB drops to $250, her position faces liquidation. Leverage magnifies both gains and losses.
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Always trade responsibly—understand the risks before using leverage.