What leverage is applied to my account?
Leverage available for you trading account with City FX Broker varies from 1:100 to 1:500 depending on account type. For more details, visit the Account Types page.
Leverage in Forex is the ratio of the trader's funds to the size of the broker's credit.
In other words, leverage is a borrowed capital to increase the potential returns. ...
So, Forex Leverage is a way for a trader to trade much bigger volumes than he would, using only his own limited amount of trading capital.