I have recently moved from Windows to OSX. I work with multiple screens, so was used to losing the cursor on occasion.
There was a setting in Windows to highlight the cursor location by pressing
Ctrl. Is there a similar setting in OSX?
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With OS X El Capitan and later, all you need to do is move the mouse back and forth quickly, and it will automatically make the mouse bigger. The advantage of this is that you don't need to manually set your mouse to a bigger size if you don't want to.
If this doesn't work for you, the option to turn it on can be found in
System Preferences > Accessibility > Display > Shake mouse pointer to locate.
Mac OS X's built-in option is restricted to increasing the mouse cursor size.
System Preferences -> Accessibility -> Display -> Cursor Size While this will help with your issue by making the mouse easier to find, it doesn't highlight the mouse, and you get side effects such as a larger mouse text selection tool which makes it harder to work with text.
The old go-to solution was OmniGroups's OmniDazzle, but this no longer works on most current Macs. I understand this is a hardware driver issue, and if you have a older Mac it may still work for you.
The free Mouse Locator was mentioned by @mateusz-szlosek. It does what you want, but has limited configuration and the style a bit unpolished.
The most sophisticated option is Mouseposé which is a polished application with very nice animation effects for highlighting the mouse. It has many other features which are very useful during presentations or creating screencasts such as effects on clicking buttons and displaying keystrokes on the screen. Check out their video to see what it can do.
You can checkout Presentify on the Mac App Store. It not only highlights the mouse/cursor for you but also lets you draw on or annotate any screen.
Demo: https://youtu.be/CTR1iAbGhjg (this is of an older version)
Mac App Store: https://apps.apple.com/app/presentify/id1507246666
Disclosure: I am the developer of this app.
A variation is a utility that will put a circle around the cursor when you shake the mouse. I don't find the built-in facility to be enough; growing the cursor is often not noticeable (to me). I've been using myPoint Light S for years and it's worked great. I recently updated to macOS 10.12.4 and it still works.
Pro Mouse can do the job nicely. Features also seem richer and modern.
Simple Mouse Locator, As the name suggests, simple with a good set of settings and can do the job.