margintrading

Margin trading can amplify profits, but it also significantly increases risk. Recently, many traders receive notifications about Portfolio Margin Mode Margin Calls, which can be confusing and stressful. This article explains what a margin call means in simple terms and what actions you should take immediately to protect your funds.
A margin call happens when the maintenance margin ratio of your account drops below a required safety level. In Portfolio Margin mode, Binance calculates risk across all your positions together. When your ratio falls below 200%, Binance issues a warning. If it continues to drop and reaches 105%, the system will automatically liquidate your positions to prevent further losses.
In simple words, this means your trades are using too much borrowed money compared to the assets you actually own. Market volatility, price drops, or high leverage can quickly push your account into danger. Even a small market move can cause large losses when leverage is involved.
Why This Is Risky
Crypto markets are highly volatile and unpredictable. When prices move against your position, losses grow fast under leverage. If your margin level becomes too low, Binance must protect itself by force-closing your trades. This often happens at unfavorable prices, locking in losses.
What You Should Do Immediately
To avoid liquidation, you can take one or more of these actions:
Add more funds to your margin or futures account to improve your safety ratio
Reduce or close open positions to lower risk exposure
Repay borrowed funds if you are using loans
Lower leverage to reduce sensitivity to price movements
If you are not an experienced trader, it may be safer to close leveraged positions and focus on spot trading, where liquidation risk does not exist.
Final Advice
Margin trading is powerful but unforgiving. Always monitor your margin ratio, use conservative leverage, and manage risk carefully. A margin call is not just a warning—it’s a signal to act fast and protect your capital.
Trade smart, protect your funds, and never risk more than you can afford to lose.

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