What Is Leverage?
Leverage is a loan offered by a broker on an exchange during margin trading to increase the availability of funds in trades.
The term leverage relates to the extent by which a trader’s position and hence profitability has risen through the loan. 

It is also known as the amount of debt borrowed by a firm to fund assets. 

Leverage is used by investors to increase their purchasing power in the market. 

For instance, take a $100 Bitcoin position. Assuming a trader’s position was increased by a leverage of 50x — commonly expressed as a ratio of 1:50 — this would mean the $100 BTC position is now $5,000. 
The amount the trader initially has is called margin. This amount is used as a collateral if the cryptocurrency or asset in question falls.