In the case of a trade in the spot forex market (in contrast to the binary options you're used to), your profit on a long trade will be the difference between the bid price at 7.05 for which you sell and the ask price you paid when you bought at 7.00. In the case of a short trade (you were hoping the price would go down and it did), your profit will be the difference between the bid price at which you sold to open your position at 7.00 and the ask price at 7.05 when you "buy to close".
Either way, the spread will work against you, in other words, so you'll need to cover that, before making profit - and it's even possible that the spread may change a little between 7.00 and 7.05 when you're trading. (But it's still generally a whole lot safer and better, overall, than a binary option with which the deck is typically even further stacked against you by the built-in "house edge" you have to overcome too.)
A stop-loss is always available, when you open a position, and you can choose where it goes (except that some brokers will require it to have a minimum value).
And regarding leverage, this is a huge subject which you need to read about. I think (and hope) that a slow, careful read through ths first page of this thread will explain some of it to you: http://forums.babypips.com/risk-management-and-trading-plan/82081-trying-understand-leverage-risk.html, and this one might help, too: http://forums.babypips.com/newbie-island/83715-leverage-ratio-lot-sizes-help.html.
(Edited to change a word or two for clarity, i.e. to give you a chance of knowing what I was on about ... :8: )