At present, the only legal way to fry crude oil in China is the account crude oil of ICBC, which we can call paper crude oil. There are four trading products under this project, including North American crude oil in US dollar account, North American crude oil in RMB account, international crude oil in US dollar account and international crude oil in RMB account. Each product includes two operations, namely, buying before selling and selling before buying, that is, two-way trading in the usual sense. The transaction price of each transaction is basically the same as the international crude oil price, but there are some differences in transaction time. The trading hours of crude oil in ICBC account are: Tuesday to Friday from 00: 00 to 03: 00, 09: 00 to 24: 00, Monday from 09: 00 to 24: 00, and Saturday from 00: 00 to 03: 00.
If speculators see that the price of crude oil will rise, they can buy it first and then sell it. The significance of this operation is actually to buy crude oil at the current price, and then sell crude oil after the price of crude oil rises, so as to profit from the price difference.
If speculators think that the price of crude oil will fall, they can sell it first and then buy it. This operation can be understood as speculators borrow a certain amount of crude oil from banks to sell, then wait for the price of crude oil to fall, and then buy it back to banks at a lower price, thus making a profit.