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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.

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