Leverage affects the maximum lot size you can open.
For example, on a small leverage you would not be able to open large lot site, like 1.0 which is standard lot.
this is a smart beginner question. I was confused with leverage and what it was when I first started out. But, yea the leverage determines the maximum lot size you can use like what @GetKnowTrading said . And if you have a $1k account and close the trade at 50 pips on any pair then you would lose $5 for all pairs.
leverage sounds simple in words , but when using high leverage then you can realize its a most dangerous thing in the world which can make you gainer and also a loser within very short time.
So since leverage affect margin level% using the example below how much % margin level will be left when opening an 1 order of buy eur/usd 0.01 on each account?
Trade 1 account 1000$ leverage 1:500 = how much % margin level
Trader 2 account 1000$ leverage 1:300 = How much % margin level
Trader 3 account 1000$ leverage 1:100 = how much % margin level
Trader 4 account 1000$ leverage 1:50 = How much % margin level
Trader 5 account 1000$ leverage 1:1 == How much % margin level
its a good suggestion you are talking about. appreciate. thanks. but in general Forex traders like to use leverage with no calculate, as a result fall a great trouble above all when market moves at random.