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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.