# 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. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.variational.io/omni/trading/leverage.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.