On Forex trading, a small margin deposit can control a total contract value is greater. Leverage gives the ability to make nice profits, and at the same time to maintain a minimum capital risk.
For example, Forex brokers offer 200 to 1 leverage, which means that a $ 50 dollar margin deposit can make a trader to buy or sell $ 10,000 price of the currency. Similarly, with $ 500 dollars, one could trade $ 100,000 dollars and so on.
But leverage is a double-edged sword. Without proper risk management, this kind of degree of leverage can lead to large losses as well as large gains.