What is leverage?

Leverage is the increased buying power that is available to margin account holders. Leverage is expressed as a ratio (for instance, 1:3 or 1:20). Here, for every 1 BTC deposited to a margin trading account, a crypto trader is able to enter into trades worth 3 BTC or 20 BTC, respectively. Leverage may be applied to both buy (long) and short (sell) positions.