Example: buy at $100, sell at $150, profit $50 per share, or 50/100 = 50% if you use all your own money.
Use only $50 of your own money and your return is 50/50 = 100%
Use $70 of your own money and your return is 50/70 = 71.43%
...not accounting for interest paid to your broker.
Leverage is a double-edged sword. It'll make money faster IF you're a profitable trader but it will also decimate your account faster if you aren't.
sure it does, you have to cover your loan costs
Like if two positions With the same parameters are opened separately in two different accounts having The same account balance,lot size the same,The same broker, but different leverage like 1:500 and 1:100 respectively which of the accounts will make profit more than the other?