A hydraulic system includes a first and a second rotating hydraulic machine, the first and second hydraulic machine being arranged to provide a torque via a common output shaft; a first valve arrangement for providing a differential hydraulic pressure level over the first hydraulic machine by using two sources of hydraulic fluid having different hydraulic pressure levels, a second valve arrangement for providing a differential hydraulic pressure level over the second hydraulic machine by using two sources of hydraulic fluid having different hydraulic pressure levels; and a control unit configured to control the first valve arrangement and the second valve arrangement such that different discrete levels of torque are provided via the output shaft of the hydraulic system. A hydraulic system for providing different discrete levels of torque using one hydraulic machine and a plurality of differential pressure levels, and a method for controlling a hydraulic system, are also provided.