In Options Trading, How Does High Leverage Affect the Greek Letter “Delta” and Overall Position Risk?

Leverage itself doesn't directly change an option's Delta, which measures the option price's sensitivity to the underlying asset's price. However, high leverage allows a trader to control a much larger notional value of the underlying asset for a small premium.

This means the total dollar change in the position's value (Delta multiplied by the notional size) is significantly amplified, dramatically increasing the overall dollar risk and potential for large losses.