I've just placed my first ever short trade using the BTC/USDT pairing through Binance Margin (Isolated rather than Cross). I kept the amount very low for my first trade just in case I did anything wrong - but fortunately the trade seems to have gone through ok...
The Isolated trade on Binance allows me to borrow 10x the amount I have transferred into my Margin account. My question is, does the Liquidation Price (shown in the Positions tab) trigger when I have lost all of the money in my Margin account, or, can it access the money in my Spot account as well?
So my question is really... When making a short trade through Binance Margin, am I putting my Spot account at risk or just the money in my Margin account?
In no case can the broker go onto your spot account in order to cover the margin required for holding a trade-in situation of a liquidation. If such a case happens that you're about to your liquidation price with all margin almost gone he will just liquidate the trade. The worst scenario that might happen will be in case of cross margin in which exchanges use margin from other trades as well, so if you are in profit in a trade and near liquidation in a trade it will calculate your margin requirement on an overall basis and take some margin from the trade in profit. All in All your spot wallet is absolutely safe while making any margin trade.