What is Brent crude oil futures?

1. Futures trading is a special trading method. Early futures trading originated in Europe from 1 1 century to14th century and developed in Japan from17th century. The modern futures market originated in the United States in the late19th century. Futures trading refers to buying and selling futures contracts in futures trading places according to certain rules and regulations. The world oil market has brought a huge impact, and the sharp fluctuation of oil prices has directly led to the emergence of oil futures.

Second, in order to improve the effectiveness, liquidity and cost control of the spread trading between Brent crude oil and WTI crude oil, NYMEX set up a public quotation for Brent crude oil futures trading in Dublin trading hall, and traded on NYMEX ACCESS electronic system platform for the rest of the time. The public bidding time is from 10 am to 7: 30 pm Dublin time, NYMEX ACCESS.

Third, the exchange regards arbitrage trading as a kind of transaction, which can maximize the use of margin for operators and effectively reduce transaction costs. When long positions offset short positions, the exchange thinks that arbitrage reduces market risk, especially the arbitrage of Brent crude oil futures and WTI crude oil, because these two futures contracts have good correlation, and the exchange provides 95% margin credit for one-to-one Brent /WTI arbitrage trading.