Margin trading of crude oil means that in the business of buying and selling crude oil, market participants do not need to allocate all the funds for the traded crude oil. What is the margin trading of crude oil? Only a certain percentage of the price is paid according to the total amount of crude oil trading as the performance guarantee for physical delivery of crude oil. At present, there are both crude oil futures margin trading and crude oil spot margin trading.

Main functions of crude oil margin trading:

First, price discovery is the function of crude oil futures trading, and crude oil futures price is the future embodiment of crude oil spot price.

Second, hedging, futures margin trading and spot margin trading can be realized. Crude oil hedging refers to the market operation mode that traders lock in risks or profits at the current value in order to avoid the market risks brought about by the uncertainty of future prices.

The third is speculative profit.