When trading on Isolated Margin, you may notice that your leverage levels appear to fluctuate. This article aims to clarify why this occurs and how it relates to your position's effective leverage.
Fixed Position Leverage vs. Effective Leverage:
It's important to differentiate between fixed position leverage and effective leverage:
Fixed Position Leverage:
- Fixed position leverage refers to the leverage level you initially set when opening a position.
- This value remains constant unless you manually change it yourself.
- Effective leverage represents the actual leverage at any given moment, which can vary based on changes in your position's margin caused by unrealised PNL.