How Does the Concept of Leverage Apply to Both Options and Cryptocurrency Derivatives?

Leverage allows a trader to control a large position with a relatively small amount of capital, amplifying potential gains or losses. In options, leverage is inherent because a small premium controls a large underlying asset value.

In cryptocurrency derivatives, platforms explicitly offer high leverage (e.g. 50x or 100x), meaning a small price movement can lead to significant profit or total liquidation.