The ability to control a large position with a small amount of capital. In forex, typical leverage ranges from 1:30 to 1:500.
Leverage amplifies both profits and losses. A 1:100 leverage means $1,000 controls $100,000. Most prop firms offer 1:100 leverage for forex and lower for other instruments. The key insight: leverage itself isn't dangerous — position sizing is. A trader using 1:500 leverage but risking 0.5% per trade is safer than a trader using 1:30 leverage but risking 5% per trade. Focus on risk per trade, not leverage ratio.