If a Position Has 50x Leverage, What Percentage Price Change Will Result in a 100 Percent Loss of the Margin?
A 50x leveraged position requires an initial margin of 2% (1/50). Therefore, a price change of only 2% against the position will result in a 100 percent loss of the initial margin, assuming no maintenance margin buffer.
In reality, the liquidation price is typically set before a full 100% loss to cover fees and the maintenance margin.