Leverage is the money that Forex traders borrow from their broker for a short period of time in order to handle a large position with a little amount of money. Leverage in Forex trading is stated as a percentage of the deposit, or "X."
As an example, if traders have Rs 10,000 in their Forex trading account and their broker provides 10X leverage, they can trade up to Rs 1 lakh. Similarly, they can utilise 50X leverage if their broker permits them to trade up to Rs 5 lakhs. Leverage in Forex trading can be as high as 100x, depending on the Forex margin.

In simple example leverage may be easy to understand we order bread at a price of 100 but with leverage of 100x we only pay 1, we borrow 99 to the seller and will be paid when the bread arrived at our home, leverage associated with margin requirement to open certain position size.

Leverage in forex refers to the ability to control a large position in the market with a relatively small amount of capital. It is a key feature that allows traders to amplify their potential profits, but it also comes with increased risk. Leverage is typically expressed as a ratio, such as 50:1 or 100:1, indicating the amount of exposure relative to the trader's equity. For example, with a 50:1 leverage, a trader can control a position worth $50,000 with just $1,000 of their own capital.

While leverage magnifies gains, it also heightens the potential for losses, as market fluctuations can lead to rapid and substantial declines in equity. Traders must exercise caution and employ risk management strategies when using leverage to navigate the volatile and dynamic nature of the foreign exchange market.