Leverage is a broker feature that enables you to trade bigger than your initial funds. By offering leverage, a broker lends some funds to traders in order to give them more power for trading in the market. The leverage ratios can vary from just 1:10 to 1:500 and even more.

How does it work? Let's say you trade with a leverage of 1:100 and a capital of $100. It means your trading power can reach 100x of your initial funds or $10,000.