The decline in spot crude oil can also make money mainly because it is two-way. Buying up and buying down can be profitable, but if it is predicted to fall, it will sell empty orders. Spot crude oil trading implements a long-short mechanism to avoid unilateral ups and downs. By predicting the price decline and buying the decline, it is to learn from the trading rules of the spot market to improve the trading rules of the China stock market, as long as the future trend is consistent with the predicted direction.

Give an obvious example:

Party A borrows a pen from Party B, and now offers 10 yuan. Sell this pen to C, and then buy it back to B when the price of this pen drops to 8 yuan. This is a perfect shorting process. A profit 2 yuan, this 2 yuan is short profit.

Because it is a two-way transaction, you can buy up and sell down.

Short selling is the principle of selling high and buying low. How to sell without goods? To put it simply, you can assume that you have to pay a certain margin at the banker first and borrow several corresponding warehouse receipts (crude oil). Even if there is no goods, you can buy them at a low price when they are empty and return them to the dealer when the market falls! You can also earn the corresponding spread from it.