So for me in the US with a regulated US broker,my maximum leverage is 50:1. If I opened a US pair 1000 unit micro lot using round numbers I would have to put a deposit/margin down of $20… 20 * 50 equals 1000
If I used an offshore broker with a leverage of 1000:1 opening the same 1000 unit micro lot, I would have to put a deposit or margin down of $1, 1000 *1= $1000.
As @Manxx says, with high leverage, like 1000:1, many beginners will open 10 or 20 1000 unit positions only seeing buckets of money to be made. But usually it’s buckets of money lost and the account is wiped out.