1, trading places is different:
Brent crude oil is traded on the London Commodity Futures Market, while WTI crude oil is traded on the New York Commodity Futures Exchange.
2. Different themes
Brent crude oil includes four kinds of light and low sulfur crude oils produced in Beihai Oilfield: Brent, Forties, Ekofisk and Oseberg, while WTI crude oil is mainly Middle East light crude oil.
3. Different pricing methods.
WTI crude oil is the benchmark oil for futures pricing based on American market, and the price of WTI crude oil mainly depends on Cushing crude oil inventory: when the inventory is high, WTI price drops, and when the inventory is low, WTI price rises, while Brent crude oil is the spot market benchmark oil based on European market. The influence of Brent crude oil price mainly depends on the change of OPEC output and Eurasian demand. Brent crude oil and WTI crude oil are very different, and the price difference is about 5%.
Futures trading is an advanced trading method based on spot trading and forward contract trading. In order to transfer the risk of market price fluctuation, it refers to the form of buying and selling futures contracts in an open competition on commodity exchanges through brokers.
Futures, usually futures contracts, are contracts. A standardized contract made by a futures exchange to deliver a certain amount of subject matter at a specific time and place in the future. This subject matter, also known as the underlying asset, can be a commodity, such as copper or crude oil, a financial instrument, such as foreign exchange and bonds, or a financial indicator, such as three-month interbank offered rate or stock index. Futures trading is an inevitable product of the development of market economy to a certain stage.
Futures trading is the activity or behavior of buying and selling futures contracts. Pay attention to the difference. Futures delivery is another concept. Futures delivery is the exchange activity or behavior of the subject matter (basic assets) stipulated in the futures contract on the maturity date.
Futures trading is a process of buying and selling activities. The unique functions of futures trading, such as hedging, preventing excessive market fluctuations, saving commodity circulation costs and promoting fair competition, are of great significance to the development of China's increasingly active commodity circulation system.
China's futures trading has made great progress. However, due to the lack of corresponding legislation, futures trading is in a state of no legal basis, and excessive speculation prevails. It is extremely necessary to strengthen the special legislation of futures trading.
Futures trading is a standardized contract trading method in which investors buy and sell various commodities on the futures exchange after paying a deposit of 5%- 15%. Ordinary investors can make a profit by buying low and selling high or selling high and buying low. Spot enterprises can also use futures to hedge and reduce their business risks. Futures traders generally buy and sell futures contracts through futures brokerage companies. In addition, the obligations they have to undertake after buying and selling the contract can be relieved by reverse trading (hedging or liquidation) before the contract expires.