• In Forex trading, a small margin deposit can control a much larger total contract value. 
• Leverage gives the trader the ability to make nice profits, and at the same time keep risk capital to a minimum.
•  For example:

 Forex brokers offer 200 to 1 leverage,
which means that a $50 dollar margin deposit would enable a trader to buy or sell $10,000 worth of currencies.
Similarly, with $500 dollars, one could trade with $100,000 dollars and so on.
But leverage is a double-edged sword.
Without proper risk management, this high degree of leverage can lead to large losses as well as gains.