How it works
- Initial margin = Position size ÷ Leverage (initial margin rate = 1 ÷ leverage)
- Maintenance margin = Position size × maintenance margin rate
- Max position = Available margin × Leverage
Example: a $10,000 position at 10x needs $1,000 margin. $500 at 20x controls up to $10,000.
Higher leverage means a smaller move can liquidate you. Size positions by risk, not by maximum leverage.