Home > categories > Energy Products > Crude Oil > What is the meaning of short spot crude oil
Question:

What is the meaning of short spot crude oil

What is the meaning of short spot crude oil

Answer:

It is not empty, empty single crude oil but short, popular is simply to buy down the list. Short is the crude oil in the course of an operation mode of operation, that is, when the market is expected to decline in the future, will be sold in the hands of crude oil at current prices, such as the market after the fall to buy, get the profit margin.
Crude oil is meant to buy or sell, but you should ask why you can make a profit, right? Give you a very vivid example, you can understand.For example, you predict the market over the next few days to drop special rice prices drop, but now you do not have so much money, but to hold their identity cards to somebody inside the rented a bag of rice, then you to sell the price 180 yuan, after three days, rice prices fell 120 yuan a bag you buy a bag of rice shop, also somebody, your ID card back to you, then you made a profit of 60 yuan. This is the principle of spot products short, your "identity card" is the trading margin, the transaction process only needs to provide the margin trading can be automatically returned after the end of the transaction, margin, short of the simple point that is to buy low and sell high.
Short is a term that is simply a list of falling prices. Short is the crude oil in the course of an operation mode of operation, that is, when the market is expected to decline in the future, will be sold in the hands of crude oil at current prices, such as the market after the fall to buy, get the profit margin. Spot crude two-way trading. Is expected to rise, do more; is expected to fall short, two-way can make money! Two means to do more than two short direction, is expected to rise, then buy cheap, sell at high prices, is expected to fall, then sell at high prices, buy cheap positions. Whether it is a bull market or bear market, investors have the opportunity to profit. The advantage of two-way trading is that the trading mechanism is flexible, the direction of judgment is reversed, you can immediately open positions in order to correct the direction, in order to avoid losses while winning gains. Hope useful to you!

Share to: