This monthly educational series features the basic workings of the futures and options markets and how they can be utilized to help farmers with risk management.THE FUTURES MARKETS are a prime example when discussing the use of leverage.In brief, leverage is a method to increase returns on your investment by using only five to 10 per cent of the total investment value to secure a position. It is said that in the futures market, more than any other form of investment, price changes are highly leveraged - meaning a small change in a futures price can translate into a huge gain or loss.
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