Silver crude oil deposit mainly has the following three functions:
First, price discovery. Price discovery is the function of silver crude oil futures trading, and silver crude oil futures price is the future embodiment of silver crude oil spot price.
Second, speculation is profitable. Because of its high leverage, margin trading has also become a tool for investors to speculate and make profits.
Third, hedging. Here, it is necessary to clarify the concept of silver crude oil hedging. Silver crude oil hedging refers to the market operation mode that gold merchants adopt to lock in risks or profits at the current value in order to avoid the market risks brought about by uncertain changes in future gold prices. Both futures margin trading and spot margin trading can achieve hedging.