Leverage, or the capacity to hold a large position with a little amount of cash, is an important aspect of both futures and options trading. Futures contracts often provide more leverage than options, allowing traders to increase possible profits but raising the risk of loss. Options, on the other hand, offer minimal risk exposure due to the upfront price, making them a popular choice among risk-averse traders. Understanding the implications of leverage is important to minimising risk and increasing profits in futures and options trading.