Leverage

Leverage refers to a trader's ability to increase their exposure to the market by controlling a larger position than the value of their initial margin deposit.

Leverage is defined as 1 / initial_margin_percentage . For example, if there is a 5% initial margin requirement, then the leverage is 20x.

Decreasing your leverage will increase both your initial margin and maintenance margin requirements. Generally speaking, the maintenance margin requirement will be half that of the initial margin requirement.

Example:

5x leverage = 20% initial margin requirement and 10% maintenance margin requirement.

Decreasing your leverage may move your estimated liquidation price closer, as your maintenance margin requirements are increasing.