Latest Articles

Dollar gains, stocks teeter as US data suggests rates to stay higher

The dollar rose and a gauge of global equities slid on Thursday after data once again highlighted persistent U.S. labor market strength, suggesting the...
HomeLatestDifference between crude oil and futures

Difference between crude oil and futures

which is the futures and spot?

Is there a difference?

What is the difference between futures and ordinary futures?

In fact, divided into spot investment and futures investment two ways.

Futures trading is a form of centralized trading of standardized forward contracts.

The ultimate goal is not to transfer the ownership of commodities, but to avoid spot price risk by buying and selling futures contracts.

Futures trading is a new trading method developed on the basis of spot trading through the transaction of standardized futures contracts in futures exchanges.

Trading is mainly achieved by buying long and selling short, that is, if the future trend is predicted to rise, then buy many orders, and if the forecast is expected to fall, sell short orders, as long as the future trend is consistent with the forecast direction, you can make profits, the whole process is only a few minutes, everything depends on how to operate.

1. Trading mechanism: Futures crude oil: there is a short-selling mechanism, which can make profits through two-way trading, and there are profit opportunities in both the rise and fall of the market.

T+0 trading system.

The day can be opened many times to close the position, but there is a delivery day, the maturity must be delivered, otherwise will be forced to close the position or delivery.

At the same time, when the margin is insufficient, it will be forced to liquidate the position;

Spot crude oil: there is a short mechanism, two-way trading profit, rise and fall in the market are profitable opportunities.

T+0 trading system.

The day can be opened many times to close the position, no delivery limits, unlimited holding.

But short margin will be forced to close the position.

2. Trading capital: futures oil: margin trading, 8 to 12.5 times of leverage;

Spot crude oil: Margin trading, ranging from 20 to 33.3 times leverage.

3. Trading hours: Futures crude oil: Trading hours are from 9:00 am to 11:30 PM from 1:30 PM to 3:00 PM.

Due to the short trading time and international gold prices are not in line, short jumps are frequent.

Investors cannot enter the market at the beginning of the first time.

Easy to miss in and out opportunities;

Spot crude oil: following the opening time of Europe and the United States into daylight saving time and winter time, due to the time difference between the current domestic trading time is every trading day Beijing time 07:00 to 05:00, 05:00 to 07:00:

00 is the closing time of the exchange. Since November, following the winter trading time of the European and American markets, the opening and closing time will be delayed by one hour, which is 22 consecutive hours of trading.

Can enter at any time in the market, the continuity of the price is more superior than futures.

The most active trading period is between 20:00 and 02:00.

4, increase limit: futures oil: according to the variety of futures different daily limit 3%-15%;

Spot crude oil: no limit to increase.