Leverage definition

Instead of paying for the total value of a leveraged trade, you put down a smaller amount known as your margin. When buying $10,000 of EUR/USD, for example, you might only have to put down 5% of your position’s value as margin ($500). 

Your profit or loss would still be based on the $10,000, however. It's important to remember that leverage will magnify both your profits and your losses.