Crude oil investment is a hot investment project in the current market, so some people have asked, what is the difference between spot crude oil and futures crude oil? The following is the spot crude oil and futures crude oil compiled by the editor of Clearview. The differences in investing, I hope it will be useful to everyone.

The first difference between spot crude oil and futures crude oil investment: different funds

Spot crude oil: margin trading. Leverage ranging from 20 to 33.3 times.

Crude oil futures: Margin trading with leverage ranging from .8 to 12.5 times.

Second: Different mechanisms

Spot crude oil: There is a short-selling mechanism, and two-way trading can be profitable. There are profit opportunities in both rising and falling markets. T+0 trading system, you can make profits on the same day There are no delivery restrictions for opening and closing positions multiple times, and you can hold them indefinitely. However, if the margin is insufficient, the position will be forcibly closed.

Futures crude oil: There is a short-selling mechanism, two-way trading can be profitable, and there are profit opportunities in both rising and falling markets. T+0 trading system, positions can be opened and closed multiple times on the same day, but there is a delivery date. Delivery is required upon expiration, otherwise the position will be forcibly closed or delivered in kind. At the same time, if the margin is insufficient, the position will also be forcibly closed.

Third: Trading times are different

Spot crude oil: Following the opening time of Europe and the United States, it is divided into summer time and winter time.

Due to the time difference, the current domestic trading hours are from 07:00 Beijing time on each trading day to 05:00 the next morning. 05:00 to 07:00 is the exchange's suspension and settlement time.

In November, the European and American markets will start to follow the winter time trading time. The opening and closing are postponed by 1 hour, that is, 22 hours of continuous trading. You can enter at any time of the market. The price continuity is more advantageous than futures. The most active trading period is from 20:00 to 02:00. between.

First of all, spot crude oil investment implements a T+0 trading system, and you can make multiple lots every day.

It has leverage to improve the utilization rate of investors' funds; it has a two-way trading mechanism of buying and selling, and there are investment opportunities whether the price rises or falls.

The biggest advantage is that the risk is smaller, the market is easy to grasp, and there are more profit opportunities. It is most suitable for investors who pursue a stable style.

This investment method was mainly used among large institutions in the past. Since February 14, 2014, the Beijing Crude Oil Exchange has opened a channel for individuals to make spot investments. Institutional members within the firm cooperate to invest.

Spot crude oil trading means that buyers and sellers conduct physical crude oil transactions immediately or within a short period of time based on the agreed payment method and delivery method based on the demand for physical crude oil and the purpose of selling physical crude oil. A form of transaction.

In spot trading, with the transfer of commodity ownership, the exchange and circulation of crude oil entities are completed at the same time. Therefore, spot crude oil trading is a direct manifestation of the operation of crude oil commodities.

Spot crude oil trading is a widely used and highly concerned trading method internationally, especially in economically developed countries.

Spot transactions are transactions between major banks and between major banks on behalf of major customers. After the transaction is concluded, the payment and delivery of funds will be completed within two business days at the latest. But the delivery time can be continuously extended.

Futures crude oil investment Futures crude oil investment is a trading method relative to spot trading. It is developed on the basis of spot trading.

An organized way of trading by buying and selling standardized futures contracts on a futures exchange. The object of futures trading is not the commodity (subject matter) itself, but the standardized contract of the commodity (subject matter), that is, a standardized forward contract.

This investment method can also be used by ordinary investors, mainly for direct futures trading.

The advantage is that it can be operated with leverage, long or short, flexible in operation, and has good liquidity. The disadvantage is that the risk is huge, the amount of funds used is large, and investors need to have sufficient experience.

The concept of futures trading: Futures are a type of transaction in the form of a contract, and the object of the transaction is mainly buying and selling contracts. Futures are divided into commodity futures and stock futures. Currently, we do not have stock futures in China. Let me explain commodity futures.

Futures are relative to spot prices. Their delivery methods are different. Spot is cash and futures is a contract transaction, that is, the mutual transfer of contracts. The delivery of futures has a time limit. Before expiration, it is a contract transaction, but on the expiration date, the contract must be cashed out for spot delivery. Therefore, large futures institutions often deal in both spot and futures, which can be used for both hedging and price speculation. Ordinary investors often cannot achieve delivery in the future and have no choice but to speculate purely. The speculative value of commodities is often related to factors such as spot trends and the term of the commodity.

How much does it cost to open an account for futures trading? It is very simple. Just find a futures company to open an account, sign a contract, pay a certain margin, and then you can enter the market for trading.

Futures trading is a contract transaction. For each transaction, you only need to pay a deposit or margin of the actual price of the corresponding commodity. The specific margin ratio is determined by the futures exchange according to market conditions, and each futures company will also make adjustments.

For example, if you buy futures of commodity A, its margin ratio is 1:10, and its trading price is 10,000 yuan per unit. Then you only need to pay 1,000 yuan to buy one unit of product A. If the price of product A increases by 10%, then you have doubled, and your 1,000 becomes 2,000. If the price of commodity A drops by 10%, you will lose all your money. If you close the position at this time, your 1,000 will become 0. If you want to continue to hold the position, you must add a margin. Many people often continue to add margin calls because they are dissatisfied with the market, and eventually their families are ruined.

There are currently companies in China that act as agents for external trading of futures, but the risks are very high.

If you want to do well in futures, you must learn to wait for opportunities and never rush into operations. People who are diligent cannot make money. The futures market is an opportunity every day. It is better to miss it than to make a mistake!

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