Rates as of 17 July 2026
1.00 lot of AUD/USD at 30:1 leverage requires A$3,333.33 margin. ASIC's close-out floor sits at 50% of that: A$1,666.67.
- Position notional
- A$100,000.00
- Initial margin required
- A$3,333.33
- 50% close-out floor
- A$1,666.67
Worked example
One standard lot of AUD/USD is 100,000 Australian dollars of notional exposure, which is A$100,000.00 in an AUD account. AUD/USD is a major pair under the ASIC caps, so the leverage limit is 30:1 and the broker must collect at least 1/30 of the notional as initial margin: A$3,333.33. If the account's net equity later falls below 50% of the aggregate initial margin on open positions, A$1,666.67 here, the broker is required to start closing positions; 50% is the regulatory floor and a broker may set its own trigger higher (17 July 2026 rates).
How to use this calculator
Choose the instrument, enter your position size in standard lots, and pick your account currency. The ASIC leverage cap for the asset class is applied automatically and shown read-only beside the inputs; it is set by regulation, not by broker generosity. The results give the position's notional value, the initial margin the broker must collect, and the equity level at which forced close-out begins.
Margin is not a fee. It is your own equity set aside while the position is open, returned when it closes. The cost of holding the position comes from the spread, any commission and overnight financing, which this calculator deliberately leaves out; our broker cost calculator compares the first two across 29 brokers.
ASIC retail caps by asset class
The caps below come from the ASIC Product Intervention Order (Instrument 2020/986), in force since 29 March 2021 and extended to 23 May 2027. They bind every AFSL-holding CFD issuer, so no ASIC-regulated broker can offer an Australian retail client more.
| Asset class | Maximum leverage | Initial margin |
|---|---|---|
| Major forex pairs | 30:1 | 3.33% |
| Minor forex pairs | 20:1 | 5% |
| Major stock indices | 20:1 | 5% |
| Gold | 20:1 | 5% |
| Commodities other than gold | 10:1 | 10% |
| Minor stock indices | 10:1 | 10% |
| Shares and other assets | 5:1 | 20% |
| Crypto assets | 2:1 | 50% |
A major currency pair is any two of the Australian dollar, British pound, Canadian dollar, euro, Japanese yen, Swiss franc and US dollar, per the instrument's definition. That puts AUD/USD, AUD/JPY and EUR/AUD all at 30:1; a pair involving any other currency, such as AUD/NZD or NZD/USD, is a minor at 20:1.
Each tier is a ceiling on leverage, which makes it a floor on margin: the instrument's "at least" wording lets any broker require more margin than the minimum. This calculator prices at the regulatory maximum, so your broker's own margin schedule can only be equal or more conservative.
Margin maths
Initial margin = notional value x (1 / leverage ratio). For forex, notional is 100,000 units of the base currency per standard lot, converted to your account currency. For gold, notional is 100 ounces per lot at the current spot price. The margin percentage is just the ratio inverted: 30:1 means 3.33% of notional, 20:1 means 5%, down to 2:1 meaning 50% for crypto.
Margin scales linearly with size: 0.10 lots needs one tenth of the margin of 1.00 lot. It also moves with exchange rates when the base currency is not your account currency, which is why the calculator prices notional at current rates rather than assuming a fixed figure. The mechanics of margin calls and free equity are covered in our margin guide.
What happens at 50% margin close-out
The same instrument that caps leverage also mandates close-out protection. When the net equity of your CFD account drops below 50% of the total initial margin required for your open positions, the broker must terminate positions as soon as market conditions allow until the account is back above the floor. The 50% figure is the instrument's minimum: a broker may set its close-out trigger higher, so its PDS margin policy is the final word. Combined with negative balance protection, this means a retail account cannot lose more than its deposited funds.
Close-out is calculated across the whole account, not per position. Two positions each using A$3,333.33 of margin share a single A$3,333.33 close-out floor, so a loss on one can trigger the closure of the other. Watching free margin rather than per-trade stop distance is what prevents that surprise.
Wholesale leverage, honestly
Brokers may offer higher leverage, commonly up to 500:1, to clients who qualify as wholesale under the Corporations Act tests: certified net assets of at least A$2.5 million, gross income of at least A$250,000 in each of the last two years, or a A$500,000 product value. Qualifying strips the retail protections this page describes: the leverage caps, the 50% close-out rule and negative balance protection all stop applying, and AFCA access narrows. Higher leverage is a larger loss pipe, not a benefit, unless position sizing discipline replaces the regulatory floor; our high-leverage broker guide covers who genuinely fits that profile.
FAQs
What leverage can Australian retail traders get?
Is AUD/USD a major pair under the ASIC caps?
What happens when my margin hits the close-out level?
Can I get more than 30:1 leverage in Australia?
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About the author
Justin co-founded CompareForexBrokers in 2014 and has traded forex since 1998. Based in Melbourne, he has tested every ASIC-regulated broker on this site personally and has written for Forbes, Kiplinger, Finance Magnates, the Australian Financial Review and The Age. He holds a Bachelor of Commerce (Honours) and a Master's in Marketing from Monash University. Justin is the Strategic Head of Research for the site.