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a little note Leverage.
i liken it to a loan, except the bank is the exchange(e.g. Gate.io)
You have $100usdt and want to trade with $150usdt
You put up a fraction of $150usdt as collateral for the exchange to lend you the full amount.
Leverage is simply how much collateral you put up for a position.
More collateral = more margin = less leverage.
Less collateral = less margin = more leverage.
Leverage impacts collateralisation ( liquidation price), not the position size itself.
So whether you’re long or short with 20x or 5x or 100x. It is the position size that dictates the PnL...
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