How does trading leverage work?

How does trading leverage work?

Increasing leverage does not affect profit or loss. These parameters are influenced only by position size. With higher leverage, you can open larger positions, but this is not always necessary.
For example, a 1-lot position on any instrument with 1:100 leverage will give the same profit/loss as a 1-lot position on the same instrument with 1:500 leverage. However, with higher leverage, your margin requirements are lower, which gives you more free margin and allows you to open more positions.