Leverage can be a great tool if it's used correctly. But what people forget is that it cuts both ways, right? Futures are just what it says: It's the price of a commodity in the future. The idea being that there's the carrying cost of money. If you're carrying the cost of cattle, or carry the cost of gold,. You're going to pay more for it in the future than you are right now. That's called cantango.

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