how does unlimited leverage work?

With unlimited leverage, the broker will not ask for any margin, your entire account balance will be used for the trade.

Your trade will be structured such that for every pip movement, your entire account balance is at stake.

So, if you have a $100 account balance (after spread deduction) and price moves against you by 1 pip, your entire $100 will be wiped out.

If price moves in your favor by 1 pip, then you will make a profit of $100 per pip.

Unlimited leverage is just like betting (winner takes all). There is no room for managing losing trades. When you enter a position and it goes in your favor, your trading account balance is doubled with every pip movement. If the market moves against you by even 1 pip, your entire account balance will vanish.