How Does Increasing Leverage Affect the Required Initial Margin for a Perpetual Contract Position?

Increasing leverage decreases the required initial margin. Leverage is essentially the ratio of the total position value to the initial margin.

For example, 10x leverage means the initial margin is 1/10th (10%) of the notional value. Higher leverage allows a trader to control a larger position with less capital, but it also increases the risk of liquidation.