Comparison
Differences between Leveraged Tokens and other derivatives¶
The biggest difference between leveraged tokens and margin trading/perpetuals is that leveraged tokens will rebalance themselves both periodically and when reaching a certain threshold, in order to maintain certain leverage.
This is obviously different from both margin trading and perpetuals - products whose real leverage constantly changes according to price fluctuations, even though traders have designated a specific leverage level upon taking on a position.
You can check this article for more details about leverages in different DeFi products.