You're bombarded with numbers like 1000:1 leveraged trades on Forex marketing sites; and frankly, none of the traders actually know what they are looking at. Leverage looks like a key that unlocks the secret vault – deposit a few pounds and control tens of thousands, technically speaking that's the truth, but it's the mechanics behind it that truly matter, not the ratio itself. 
The basic math is this: £100 deposit allows you to control a £100,000 worth of value on a trading account set to 1000:1. This isn't some mythical statement, brokers will allow this; although these types of accounts are becoming far more rare due to clamp down on regulation globally, with both US and UK retail limits way below this for years now. Thus if you see 1000:1 advertised, chances are you are looking at an offshore broker with little regulation. But why on earth would anyone need that much leverage? Very small fluctuations in the market will mean big money. A 0.1% fluctuation on a £100,000 position will yield you £100 compared to a negligible amount on a £100 account without leverage. That is the allure, and it is real; but here comes the part the ads don't tell you about; leverage does not generate profit, only amplification, and amplified loss occurs in exactly the same way amplified gain does. A trader using high leverage with absolutely no risk management could lose all of the funds in his account within minutes of volatile trading. I've seen it happen to otherwise completely intelligent people in every other area of their life. Margin calls are the biggest hurdle, because with a 1000:1 margin requirement; at read here just pennies away from your required minimum investment, you'll get a call to deposit more, or be liquidated, a trade which would represent a minimal loss on 10:1 leverage is full liquidation on 1000:1. Experienced traders use high leverage rarely or not at all; sometimes getting access to it but never using the full account size; the ratio acts like a ceiling rather than a goal, where it is novices ironically, who crave the high leverage, possibly due to the loud upsides present in a lot of the marketing. Position size is what matters more than leverage ratio itself. The trader who knows how much of their account they are actually risking on any one trade will last significantly longer than a trader chasing the highest margin account a Forex broker has on offer and that is the one part of Forex trading they will never put in a headline.
The basic math is this: £100 deposit allows you to control a £100,000 worth of value on a trading account set to 1000:1. This isn't some mythical statement, brokers will allow this; although these types of accounts are becoming far more rare due to clamp down on regulation globally, with both US and UK retail limits way below this for years now. Thus if you see 1000:1 advertised, chances are you are looking at an offshore broker with little regulation. But why on earth would anyone need that much leverage? Very small fluctuations in the market will mean big money. A 0.1% fluctuation on a £100,000 position will yield you £100 compared to a negligible amount on a £100 account without leverage. That is the allure, and it is real; but here comes the part the ads don't tell you about; leverage does not generate profit, only amplification, and amplified loss occurs in exactly the same way amplified gain does. A trader using high leverage with absolutely no risk management could lose all of the funds in his account within minutes of volatile trading. I've seen it happen to otherwise completely intelligent people in every other area of their life. Margin calls are the biggest hurdle, because with a 1000:1 margin requirement; at read here just pennies away from your required minimum investment, you'll get a call to deposit more, or be liquidated, a trade which would represent a minimal loss on 10:1 leverage is full liquidation on 1000:1. Experienced traders use high leverage rarely or not at all; sometimes getting access to it but never using the full account size; the ratio acts like a ceiling rather than a goal, where it is novices ironically, who crave the high leverage, possibly due to the loud upsides present in a lot of the marketing. Position size is what matters more than leverage ratio itself. The trader who knows how much of their account they are actually risking on any one trade will last significantly longer than a trader chasing the highest margin account a Forex broker has on offer and that is the one part of Forex trading they will never put in a headline.