Leverage calculator
Work out the leverage on a trade two ways: enter your position size and margin to see your effective leverage ratio, or enter a leverage ratio to see the margin it requires. Built for Australian forex and CFD traders, with the ASIC 30:1 retail cap flagged. No signup, everything runs in your browser.
Calculator
- Margin: 0%
How leverage is calculated
Leverage is simply your position size divided by the margin you put up:
- Effective leverage = position size / margin. Control a 100,000 AUD position with 5,000 AUD of margin and your leverage is 20:1.
- Required margin = position size / leverage. A 100,000 AUD position at 30:1 needs about 3,333 AUD of margin.
The smaller the margin relative to the position, the higher the leverage, and the more both gains and losses are magnified. Use the toggle above to solve for whichever figure you need. To size the position itself to a fixed risk, use the position size calculator, and to see the margin across instruments, the margin calculator.
ASIC leverage caps
Since 2021, ASIC limits leverage for retail clients in Australia. The calculator flags any ratio above the 30:1 major-pair cap. The full set:
- 30:1 on major currency pairs
- 20:1 on minor pairs, gold and major indices
- 10:1 on other commodities and minor indices
- 5:1 on individual shares
- 2:1 on crypto-asset CFDs
Using the maximum is a choice, not an obligation. Lower leverage with disciplined risk management is how most consistent traders operate. Leverage magnifies losses as much as gains.
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Frequently asked questions
Leverage is your total position size divided by the margin (the deposit) you put up. If you control a 100,000 AUD position with 5,000 AUD of margin, your leverage is 100,000 divided by 5,000, which is 20, written as 20:1. To go the other way, the margin a position needs is the position size divided by the leverage ratio, so a 100,000 AUD position at 30:1 needs about 3,333 AUD of margin. This calculator does both.
There is no single right answer, and lower is generally safer. Many experienced traders use far less than the maximum available, because high leverage magnifies losses just as much as gains and can trigger a margin call quickly. In Australia, ASIC caps retail leverage on major currency pairs at 30:1, but using the maximum is a choice, not a requirement. Beginners in particular are usually better served by conservative leverage and careful position sizing.
Since 2021, ASIC caps leverage for retail clients at 30:1 on major currency pairs, 20:1 on minor pairs, gold and major indices, 10:1 on other commodities and minor indices, 2:1 on crypto-asset CFDs, and 5:1 on shares. These caps apply to ASIC-regulated brokers serving retail clients. Professional clients can access higher leverage, but with fewer protections. The cap on majors is the one most forex traders deal with.
Yes, directly. Leverage multiplies both your gains and your losses by the same factor, so a position at 30:1 moves your account five times faster than the same position at 6:1. Higher leverage also means a smaller adverse price move can wipe out your margin and cause a margin call or a forced close. Leverage itself is a tool; the risk comes from using more of it than your account and stop-loss can comfortably absorb.
They are two sides of the same relationship. Leverage is the ratio of your position size to your deposit (for example 30:1), while margin is the actual deposit amount required to open and hold that position. Higher leverage means a smaller margin is needed to control the same position, and lower leverage means a larger margin. This calculator lets you solve for either one given the other and your position size.
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