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Leverage on Binance

Guys, I have a question about trading on leverage. On ByBit I have set the leverage x50 - 300usd x 50 = 15000usd the liquidation price is -2% and everything agrees because if the btc falls by 2% it must take my 300 to cover the loss. I have a problem with binance and insulated leverage x10 - 1000 usd x 10 = 10 000 usd. Similarly the liquidation price should be on -10% while binance shows me that the liquidation price is on -5%. WHY? After all, with a drop of -5% from my 1000usd, only half is lost, so why is it liquidating?

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2 answers


I don't fully understand your question. Sorry man


Hey there! It seems like you are confused about the leverage liquidation price on Binance compared to ByBit. The liquidation price is determined by a few factors including the leverage amount, the initial margin, and the maintenance margin required by the exchange. In the case of ByBit, with a leverage of x50 and an initial margin of 300 USD, the liquidation price at -2% makes sense because a 2% drop in the price of BTC would require the 300 USD initial margin to cover the loss. On the other hand, with Binance and a leverage of x10 and 1000 USD initial margin, the liquidation price at -5% may seem confusing. However, this could be due to Binance having a higher maintenance margin requirement compared to ByBit. This means that a 5% drop in the price of BTC would require more than half of your initial margin to cover the loss, hence triggering liquidation. I recommend checking Binance's documentation or reaching out to their customer support for more clarification on their specific liquidation rules based on leverage. Hope this helps!