Beijing Petroleum acts as an agent for Beijing Petroleum Exchange to attract investment

What is spot trading?
A concept of spot electronic trading market
Spot refers to physical goods that can be used for shipping, storage and manufacturing. Before the century, traditional trade was the main form of trade. The form of traditional trade was that buyers and sellers met directly, reached an agreement on the purchase and sale of goods, and then concluded the transaction, paying one hand and delivering the goods. Bulk commodity transactions in traditional trade are mostly carried out in the form of contracts. Buyers and sellers will conduct commodity transactions in the future according to the contents of the signed contract. It has the following shortcomings: Price formation is irregular and risks cannot be transferred. Since the contract price is determined based on the supply and demand situation at the time and other factors, changes in the market price during the execution of the contract are inevitable, which is beneficial to one party but not beneficial to the other party. At the same time, the formation of prices is also largely restricted by geography, making it difficult to form fair prices.
Credit risk. The inevitability of price risk affects the effectiveness of contract execution, and credit risk is inevitable in this case.
There are very few buyers and sellers, making it difficult to form a centralized market. Buyers and sellers negotiate and bargain individually to reach an agreement. Negotiation skills and skills have a great impact on the formation of prices.
The contract is poorly regulated. Every time a contract is signed, a series of steps such as customer search, price inquiry, preliminary negotiation, and signing must be repeated, and there must be endless arguments about factors such as variety, quality, time, and transportation. For bulk merchants, this kind of signing and execution is very complicated and involves high transaction costs. Increase accordingly.
With the emergence of the Internet, the world has slowly become a global village, and spot electronic transactions based on informatization have entered the stage of the new economy. Spot electronic trading (also known as bulk commodity electronic trading, or spot warehouse receipt trading) is a centralized bidding transaction using spot warehouse receipts as the subject matter of the transaction, using a computer network to achieve unified transaction matching, unified settlement and payment, and real-time display of price trends. transaction method. Its essence is e-commerce for spot goods. The "Specifications for Electronic Transactions of Bulk Commodities" clearly stipulates that bulk commodities can enter the circulation field, but are not retail links, and have commodity attributes and are used in industrial and agricultural production and consumption for large-volume trading of material commodities.
The spot warehouse receipt is a certificate representing the ownership of the goods issued by the market to the owner of the goods after the goods arrive at the designated warehouse. After the spot warehouse receipt is registered in the trading market, it can be entered into the spot trading market trading system through the Internet for trading. Spot warehouse receipts can be freely transferred and sold in the market, and physical delivery of spot goods can also be carried out. Spot trading is actually a standardized warehouse receipt transaction.
Spot trading uses the Internet as a tool and conducts transactions in an e-commerce model. Buyers and sellers do not meet, using the electronic trading market as the trading platform, and the national government as the referee. It is a combination of online and offline. Reality and The win-win model that combines the virtual and the traditional economy with the network economy fully solves the transaction form of many difficult problems such as spot commodity transactions, residence source, customer source, online settlement, logistics distribution and so on.
2. Main features of the spot electronic trading market
(1) Standardization of electronic trading contracts Standardization of electronic trading contracts means that except for price, all other terms of the contract are pre-specified and standardized. specialty. Once this standardized electronic transaction contract is registered, it becomes a warehouse receipt.
(2) Two-way trading means that investors can buy warehouse receipts at a low price and sell at a high price to make a profit. They can also sell at a high price and buy at a low price to make a profit. The trading method is more flexible and increases trading opportunities.
(3) Hedging mechanism The hedging mechanism refers to the reverse operation of the electronic contract to achieve the purpose of releasing the performance liability.
(4) The same-day settlement system calculates investor accounts every day to avoid debt disputes and achieve the purpose of risk control.
(5) Margin system The margin system refers to the freezing of appropriate margins for both parties to the transaction to achieve the purpose of ensuring the performance of the contract, and at the same time to leverage funds and make full use of funds.
(6) + The trading system means that the signed contract can be transferred on the same day, and if you make a profit on the same day, you can hedge and close the position on the same day, making full use of funds, while reducing the risks caused by long-term positions, and the operation is flexible.
Three functions of the spot electronic trading market
(1) Investment function Traditional spot trading is limited by the financial resources and professional level of investors due to the quality of regional goods. For ordinary investors, there is almost no investment. the value of. Since the spot electronic trading market trades standardized electronic trading contracts, the quality of goods is guaranteed in electronic trading. There are no geographical restrictions on margin trading. The investment capital is small, and ordinary investors can easily intervene to obtain economic benefits.
(2) Discovery function refers to the process of forming authenticity, expectation, continuity and authority in the spot electronic trading market through a trading operation mechanism of open, fair and efficient competition. Due to geographical restrictions and the small number of participating investors, the traditional trading model often has obvious regional characteristics. However, through spot electronic trading, there are many investors participating, including many commodity producers, sellers, processors and Importers and exporters, etc., their bidding can represent the power of both supply and demand and contribute to the true formation. At the same time, most investors participating in the transaction are familiar with the market conditions of a certain commodity, have rich business knowledge, extensive information channels, and a set of scientific analysis and forecasting methods, which basically reflect the changing trends of supply and demand.
(3) Risk avoidance The risk avoidance function means that producers and operators can effectively avoid transferring or diversifying the risks of fluctuations in the spot market by conducting hedging business in the spot electronic trading market. The basic economic principle why hedging can help avoid risks is that the spot electronic trading of a specific commodity and the spot will be affected and restricted by the same economic factors in the same time and space. Therefore, under normal circumstances, the two markets The change trend is the same. Taking cotton meal as an example, the rise in cotton meal will increase production costs for operators who use cotton meal as raw material. If a large amount is stored in spot, it will occupy a large amount of funds and cause a huge waste of manpower, material and financial resources in warehousing. In this case, warehouse receipts can be purchased on the spot electronic trading market. As cotton meal prices rise, although the cost of spot purchases increases, the warehouse receipts purchased in the spot electronic trading market will bring a certain amount of profit due to the increase, thus making up for the spot losses and achieving the purpose of avoiding risks.
The role of electronic trading of four commodities in the modern economy
(1) Prevent the emergence of counterfeit and shoddy goods. Traditional spot trading for the purpose of pursuing profits provides breeding ground for the emergence of counterfeit and shoddy products. , and in the spot electronic trading market, since what is bought and sold is a standardized contract, and the standardized contract represents spot commodities with specified quality standards, at the same time, these spot commodities must pass the quality certification specified by the East China Feed Raw Materials Trading Market when registering. The inspection agency conducts inspections without any conflicts of interest with buyers and sellers. Therefore, it can ensure the quality of spot goods, eliminate the appearance of counterfeit and shoddy goods, and protect the interests of buyers and sellers.
(2) To avoid that when buyers and sellers of triangular bonds conduct transactions, the market will freeze part of the funds as a deposit for the performance of both parties. Moreover, as the performance date of the spot electronic transaction contract approaches, the proportion of the deposit will increase accordingly. This will not only Ensuring the performance of the contract can also avoid the triangular debt problem, in which the market plays a good referee role and maintains the normal and orderly development of the market.
(3) Reduce circulation costs and stabilize production and marketing relationships. The market not only provides investors with a convenient and fast electronic trading platform, but also has a developed logistics and distribution system that greatly reduces circulation costs for many production and operating enterprises. It reduces unnecessary expenditures and the convenient transaction model also provides enterprises with a new logistics procurement and sales system, which enables timely sales or purchase of related goods and stabilizes production and marketing relationships.