Leverage or margin loan is the maximum number of loans your forex broker will give you on your capital and investment. Suppose your balance is $100 and you use the leverage of 1:200 your broker will you the maximum of 200 times when you trade. So now it is up to you how much you will borrow, so with $10, you can trade up to $2000 with the leverage of 1: 200.

Leverage in finance refers to the use of borrowed funds to increase the potential return on investment. It involves borrowing capital to amplify the purchasing power of an investor, allowing them to control larger positions in assets than their initial capital would permit. While leverage can magnify profits, it also escalates the risk of losses, as any downturn in the value of the investment can lead to amplified losses. Leverage is commonly used in various financial markets, including stocks, forex, and derivatives trading. It's essential for investors to understand the risks associated with leverage and employ it judiciously to manage their investment portfolios effectively.