The three most important concepts to understand when trading futures contracts are Leverage, Margin and Liquidation. These three terms are interdependent. This means that changing one will result in a change in the other. In this case, changing leverage results in a change in both your Margin and Liquidation.
Leverage: Leverage can be defined as using borrowed funds to increase your trading position beyond what is available in your trading account balance.
Margin: Margin can be defined as the amount of DGTX required to open 1 contract on the Exchange
Liquidation: The price at which your trade will be automatically closed by the Exchange
Increasing your leverage means you can trade a larger number of contracts than would be possible with your actual funds. This is a powerful tool as opening more contracts results in larger profit/loss per tick. To achieve this, when you increase your Leverage, the exchange will decrease the amount of margin that each contract costs you to buy. In effect, loaning you capital to trade with.
Increasing your trading power using leverage is balanced by the Exchange in Liquidation. The higher the leverage you trade with, the closer your liquidation price comes to your opening position price. Therefore, increasing your trading power using leverage results in increasing your risk of Liquidation.
So, increasing leverage allows you to buy more contracts because each contract costs you a lower margin, but doing this comes with an increased risk of Liquidation.