The original intention of contracts was to help some producers avoid huge losses caused by product price fluctuations, so a hedging mechanism was developed. Because there is no physical delivery, it is called a futures contract, and it is used for price hedging. Simply put, it means sacrificing a portion of profit to lock in the price, thereby ensuring that most of the profit can be stably secured. Since cash flow is quite important for producers, the leverage model gradually developed. For example, if you have physical goods worth one million, you would need a one-million margin to hedge. However, if producers put up one million, it might affect production, so the leverage model was created, which only requires one hundred thousand in cash. If the price fluctuates greatly, then additional margin can be added.