1, price difference between market maker and exchange
Futures trading generally requires centralized matchmaking by futures exchanges. Exchanges must be members to trade, and general customers must trade through member agents. The futures trading of refined oil products adopts the principle of price priority and time priority. In the futures market, the transaction price is uncertain, because all orders must be matched through a centralized exchange, thus limiting the number of traders with the same price.
2. The price formation mechanism is different.
The price formation mechanism of refined oil futures is the price formed by centralized bidding of all traders in the exchange, which acts as an intermediary guarantee link for matching transactions.
3. Different trading hours
The trading time of refined oil futures is only 4 hours a day, while spot crude oil is traded 24 hours a day, and it can be traded from 8 am on Monday to 4 am on Saturday.
4. Different delivery time and terms.
The transaction risk is much less than that of refined oil futures, which refers to the standard contract with delivery time limit. The reason why refined oil futures trading is risky is because there is a delivery time limit for refined oil futures trading, because refined oil futures trading must be delivered on the maturity date, so for speculators (speculators who aim at profit difference).