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What Is the Relationship between Leverage and Margin Requirement?

Leverage and margin requirement have an inverse relationship. Higher leverage means a smaller initial margin is required to open a position of a certain size.

For example, 10x leverage requires 10% initial margin, while 100x leverage requires only 1% initial margin. This smaller margin for high leverage increases the risk of liquidation.

How Does the Leverage Ratio Relate to the Initial Margin Requirement?
What Is the Relationship between ‘Theta’ and ‘Gamma’ in Options Pricing?
How Does the Initial Margin Requirement Change with Higher Leverage Settings?
What Is the Main Drawback of Using Cross Margin for High-Risk Trades?