When Aussie farmers were first introduced to futures, many were excited. It presented them with a real chance to maximise returns from their crops. 12 months later, thanks to different reasons, most of those who partook were in serious financial trouble. For smaller farmers, too much. They were gone.
none of these farmers were buying derivatives......
one is how to lock in pricing for future crops. the other is a levereged gamble on price movement, which can be manipulated after the deal.
