Leverage is a powerful tool in trading that allows traders to control a larger position with a relatively small amount of capital.  

In Commodity CFD trading, leverage is expressed as a ratio (e.g., 1:50, 1:100), meaning that for every $1 you have in your trading account, you can control up to $50 or $100 worth of commodities. While leverage can amplify potential profits, it also increases the risk of significant losses. It’s essential to use leverage cautiously and understand how it impacts your trading strategy. 

Margin is the amount of money required to open and maintain a leveraged position. When trading Commodity CFDs, the margin is calculated based on the leverage ratio offered by your broker. For example, if you want to open a position worth $10,000 with a leverage of 1:100, you would need a margin of $100 in your trading account.  

It's important to monitor your margin levels closely, as falling below the required margin can result in a margin call, where your broker may close your positions to protect themselves from losses.