What is leverage in forex?

Leverage allows you to open larger positions with a relatively small initial deposit. 

For example, if your broker allows 100 times leverage, you have the ability to trade 100 units of a currency for every one unit you have in your account that isn’t being used. 
 
However, you should keep in mind that while leverage can boost profits, it can increase losses. Leverage is a tool that should be used wisely. Respecting leverage is one of the most important things that a new trader must learn to do, because the losses can be devastating if leverage is abused. 
 
However, if you use leverage in a responsible manner, it can supercharge your returns. By balancing and mitigating risk as much as possible, you can ensure a lengthy trading career. 
 
Keep in mind that leverage can vary depending on the currency pair as well, as the main major currencies tend to offer more leverage than exotic currencies. 
 
For example, the Euro traded against the US dollar will offer more leverage than the Canadian dollar traded against the Mexican peso. This is because there is much more volume in the EUR/USD pair, and therefore, it is much easier to get your trade or stop loss filled. Remember, the broker needs to protect their balance sheet, just like you do.