This is the main difference between the two crude oils. It should be noted that crude oil trading in the international futures market has the characteristics of high leverage, so its risks are also relatively large. Investors should be fully prepared before trading crude oil.
Extended data:
The international futures market is the international market for futures trading. Futures trading is a kind of transaction in which commodity sales contracts are signed in advance, and loan payment and commodity delivery are carried out within the agreed time, but generally there is no need for real delivery, and most contracts are hedged before expiration. Futures trading only needs to pay a small amount of margin to buy and sell futures contracts through futures exchanges, that is, standardized contracts stipulated by futures exchanges.
The futures market is a financial market that trades according to the agreement reached and delivers on the scheduled date. The obvious difference between spot and futures is that the delivery date of futures is in the future, and the conditions of delivery and payment, such as price, quantity, method and place, are stipulated in the spot contract, and both commodities and securities can be traded in the futures market. Although the contract has been signed, the goods bought and sold by both parties may be in transit, may be in production, and may not even be put into production. The seller may or may not have goods or securities.
The futures market in a broad sense includes futures exchanges, clearing houses or settlement companies, brokerage companies and futures traders; The narrow sense of futures market only refers to futures exchanges. The futures exchange is the place to buy and sell futures contracts and the core of the futures market. A mature futures market is equivalent to a completely competitive market to a certain extent, and it is the most ideal market form in economics. Therefore, the futures market is considered to be a higher-level market organization form and an inevitable product of the development of the market economy to a certain stage. The futures market is a place where both parties do not deliver immediately after reaching an agreement or closing a deal, but deliver in a certain period in the future.
Futures exchange is a non-profit organization that provides places, facilities, services and trading rules for futures trading. Exchanges generally adopt membership system. The conditions for joining the exchange are very strict, and each exchange has specific regulations. First, you must submit a membership application to the Exchange. The Exchange will investigate the applicant's financial credit status, pass the examination, and only those who meet the requirements can join the membership with the approval of the Board of Directors. The membership seats of an exchange are generally transferable. The highest authority of the exchange is the general meeting of members. The general meeting of members has a board of directors or a board of directors, which is generally elected by the general meeting of members. The board of directors appoints the president of the Exchange to be responsible for the daily administration of the Exchange.