Leveraged trading works by borrowing money from your broker to extend the amount of money you put into a trade, allowing you to trade in positions larger than the amount in your trading account.
Leverage is expressed as a ratio (X:1), the amount of which is determined when you execute a trade. You can set up your account to trade with default leverage levels, or choose a broker that allows you to adjust your leverage levels on a trade-by-trade basis.
If it is a profit trade, the trading process will follow the same pattern as a trade without leverage, and the profit will be credited to your account when you close the position.
If it's a losing trade, there's a new set of factors to consider. After all, the broker doesn't want you to hold a position where you end up losing more than the margin you deposited with them.
If you want to continue holding a losing position, you will receive a margin call, which means the broker may ask you to deposit more funds to increase the margin. If you do not deposit additional funds, the broker has the right to reduce your position size to reduce the risk exposure of the position, and they may choose to place a stop loss order.
Margin is the amount of money you need to open a position, and leverage is a multiple of that margin.