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the gain is there because every track you play is recorded differently, at different volumes.
Say you have your gains set at 0 (or 12 o'clock) on channels 1 and 2. Now play a record on channel 1 (with all the eq's set to 0 and your fader all the way up).
You'll notice that this track is peaking at a certain level on your VU meter...lets say at +2db
Now play a different record on channel 2...again all EQ's at 0 and your fader all the way up. You'll notice that on this track, the VU meter is peaking at -3db on the VU meter.
So if you wanted to mix those two, channel 1 would overpower channel 2.
In addition, channel 1 is also peaking at +2db..a little into the reds. While this isnt *bad*, you technically want to keep it peaking at 0db...right in the yellow/red area.
So, for proper mixing, you would want to:
#1: lower your gain on channel 1 to have it peak at around 0db
#2: raise the gain on channel 2 to have it peak around 0db.
Now both tracks will be at the same "volume", and you will have enough headroom, should you want to mess with the EQ's etc...
Contrary to popular beleif, turning your gains all the way up and running you music WAY into the reds doesnt make anything sound better....it causes distortion and/or clipping....and it just makes for a pretty little LED lightshow 
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