The difference between trading with leverage and trading without leverage lies in the amount of capital used and the associated risks of each:

Trading with leverage: You can control a larger amount of capital using a loan from the broker, which increases potential profits but also increases risks.

Trading without leverage: You rely only on the capital you have, which reduces risks but limits potential returns.

Illustrative equation:

Buying power = Capital × Leverage

Example: If you have 1000$ and use a leverage of 1:10, the buying power becomes 1000 × 10 = $10,000. Without leverage, the buying power remains 1000$ only.