Leverage allows you to increase you market exposure by controlling a position larger than the value of their deposited collateral.
How Leverage Works
Leverage functions as a multiplier for your initial margin. It allows you to open a position worth more than your account balance.
With $1,000 in Initial Margin and 10x leverage, you can open a $10,000 position.
With $1,000 in Initial Margin and 50x leverage, you can open a $50,000 position.
A small positive move in the underlying asset's price can result in a significant gain relative to your initial deposit, whilst a small adverse move can quickly deplete your margin.
The higher the leverage, the smaller the price movement required to trigger a liquidation.
Calculating Leverage
On Omni, leverage is inversely related to your Initial Margin (IM) requirement.
50x Leverage: 2% Initial Margin requirement
20x Leverage: 5% Initial Margin requirement
10x Leverage: 10% Initial Margin requirement
2x Leverage: 50% Initial Margin requirement