Futures crude oil investment is a trading method relative to spot trading, which is developed on the basis of spot trading. An organized trading method for buying and selling standardized futures contracts on futures exchanges. The object of futures trading is not the commodity (subject matter) itself, but the standardized contract of commodity (subject matter), that is, the standardized forward contract. This investment method can also be adopted by ordinary investors, mainly for direct futures trading.
Advantages are leverage, long position and short position, flexible operation and good liquidity.
The disadvantage is that the risk is huge, the amount of funds is used more, and investors need to have enough experience. Therefore, the way of futures investment is gradually declining in China.