DislikedI don't know how much you know so I will give a general description.
Leverage is how much your bet is multiplied by. So as TJPLD rightly said if you use proper money management and keep to 1-2% per trade it doesnt make an enourmous amount of difference.
So if your using 500:1 leverage instead of 100:1 leverage you can put down 5 times less money for a simular outcome. It gives you more free margin but that should be irrelavant because you wouldnt want to let your loss run anywhere near a margin call anyway.Ignored
So lets step back a minute, assume we apply the same money management rules then and take a look at the logic behind this.
So 1:100 gives you the same outcome as 1:500 in terms of what you win or lose in the trade. The only difference being that 1:500 leaves you with more margin in your account during the trade, not required if you are applying decent Money Management, because margin should never be under threat anyway.
So the only reason to have 1:500 is if you want to increase your money management risk and therefore your lot size..it just allows you to do this when your 1:100 leveraged account may have margin called you for taking a bigger risk.
so to summerise then...........
Leverage is irrelevant unless you plan on "throwing caution to the wind", abandoning Money Management and placing larger lot sizes or increasing your number of open positions at anyone time. So to a decent trader with sound knowledge, leverage is irrelevant.
The Brokers would like it because they know it will attract inexperienced traders who lose more than they win anyway, getting in over there heads thinking they are going to make a financial fortune overnight.
You said previously that you can put down 5 times less with a 1:500 leverage account and get the same outcome....that is not correct on my understanding...leverage has no affect on your win or loss...only if you take advantage of the increased margin and therefore increase your lot size.....now it has a affect on your win or loss, but also your money management percentage you risk has gone up.
Cheers
ab1