# 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.