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Binance Margin Calculation Explained

deltin33 2025-11-10 19:09:38 views 348

Once upon a time in the bustling city of Delhi, there was a young trader named Ravi. Ravi was fascinated by the world of cryptocurrency and decided to join the popular trading platform, Binance.

However, he was unsure about how to calculate the margin for his trades. One day, he met an experienced trader named Ritu, who was known for her expertise in margin trading.

Ritu explained to Ravi that margin trading on Binance involves borrowing funds to increase the potential returns on a trade. She further explained the formula for margin calculation:

Margin = (Position Size / Leverage) * (Total Market Value of Positions / Total Market Value of All Positions)

Ravi was grateful for Ritu\“s guidance and decided to apply the formula to his trades. With time, he became a successful margin trader, thanks to the help of his friend Ritu.
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