In trading of leveraged financial instruments, a smaller margin deposit can control a much larger total contract value. Leverage gives you the ability to make large profits, and at the same time keep risk capital to a minimum. For example, if you choose 1:100 leverage, it means that a 1,000 margin deposit would enable you to execute a buy or sell order of 100,000 worth (1 Lot) of currency. Similarly, with 5,000 deposit, you could trade with 500,000 (5 Lots) and so on. However, higher leverage, without proper risk management, can lead to increased losses as well as very substantial gains, as it magnifies the outcome of the position either way.
Upon choosing a level of leverage, bear in mind that, as the leverage increases, so does the risk you are exposed to. Even though a lower leverage requires more funds for placing trades over the market, it will also lower the risk you are facing. Please consider carefully your experience and risk appetite when choosing your leverage.