Here is an example of how leverage works in Forex trading:
Forex Trader A has $5,000 USD:
If Forex Trader A has an account leverage of 10:1 and they wish to use $1,000 on one Forex trade as margin, they will have exposure of $10,000 in base currency ($1,000) = 10 x $1000 = $10,000 (trade value).
Forex Trader B has $5,000 USD:
If Forex Trader B has an account leverage of 100:1 and they wish to use $1,000 on one Forex trade as margin, they will have exposure of $100,000 in base currency ($1,000) = 100 x $1,000 = $100,000 (trade value).