Purpose: Leverage allows prop traders to amplify the potential returns on their investments. Leverage allows traders to control larger positions in a simulated trading environment than they would be able to with their own capital alone. Because of this multiplier effect, leverage consequently magnifies both gains and losses associated with trades.

Risk Management: While leverage can enhance profits, it also increases the level of risk. Therefore, it's imperative that traders judiciously manage leverage to ensure that potential losses are kept within acceptable limits. Risk management strategies may include setting position size limits, using stop-loss orders, and continuously monitoring market conditions and trends.

Purpose: Commission costs refer to the fees charged by brokerage firms for executing trades on behalf of a firm. These costs are incurred every time a trade is executed and can vary based on factors such as the volume of trades, type of securities traded, and brokerage agreements.

Profitability Consideration: It's important to note that commission costs directly impact the profitability of trades. Therefore, traders should aim to optimize trading strategies to minimize commission expenses while maximizing potential profits.

Evaluation of Trading Strategies: Additionally, commission costs should be factored into the evaluation of trading strategies while consequently determining which strategy is the best for a user's specific goals given their desired outcome. Profitability calculations must account for these expenses to accurately assess the net returns generated by each strategy.