Leverage and margin: what is the difference?
Leverage compares market exposure with the capital supporting it. Margin is the amount required to open or maintain a position. Using less margin does not reduce the price exposure of the same position. ASIC Moneysmart describes leverage and margin-call risk.
A worked example
Assume a position has a notional value of USD 10,000 and an illustrative margin rate of 5%. Required margin would be 10,000 × 0.05 = USD 500, equivalent to 20:1 leverage on that amount. This example is not a quoted Antos Pinnacles leverage offer.
A 1% adverse move in the underlying exposure would represent approximately USD 100 before costs in this simplified linear example. That equals 20% of the USD 500 margin. A 1% favourable move would produce the same gross amount in the other direction. Currency conversion or a different contract calculation can change the result.
Is margin the most I can lose?
Do not use required margin as a maximum-loss figure. Account protections and close-out rules depend on the applicable terms. The amount available in the account, market movements and transaction costs all matter.
What should I check on the platform?
Check the instrument's margin calculation, account equity and available margin before adding exposure. Keep the estimated adverse-move result beside the margin requirement; they answer different questions.
See account conditions, lot size, and the Customer Agreement for the applicable contractual terms.
Educational information only. Examples exclude costs unless stated and do not describe a recommended trade or guaranteed outcome.