When your broker offers you a leverage of 1:500, it means for everyone $1 of your capital; you receive $500 to trade with. For instance, you deposited $1000 with a leverage ratio of 1:500; you will either make a profit or loss of $25000 if your asset gain or loss 5%. Individual traders hardly use 1:500 because of the high risk involved. However, professional traders with knowledge, experience, and expertise use such leverage to assess their risks.