Leverage
Using borrowed funds to control a position larger than your own capital.
What is Leverage?
Leverage lets a trader control a position worth more than the cash they put up, with the broker effectively lending the difference. It is usually expressed as a ratio such as 10:1 or 100:1, meaning each unit of your own money controls that many units of exposure. Leverage magnifies both gains and losses in proportion, so higher leverage increases risk as well as potential return.