Nine questions to understand the BOC crude oil treasure that allows investors to put money down
The Bank of China crude oil treasure incident recently refreshed the screen. The latest development is that the Bank of China has transferred all the principal from the investor account and also issued a deposit to replace the receipt.Who could have imagined that US crude oil futures plunged to a negative value, causing domestic investors to “injure” in surprising ways.According to the announcement of the Bank of China on April 22, the subsidiary product crude oil treasure will follow -37.The official settlement price of USD 63 / barrel is priced.This means that investors of BOC Crude Oil Poor have both lost principal and owed bank money.What is going on?Sauna and Yewang sorted out the nine key issues of the incident and took you to understand the “crude oil treasure incident”.1. What happened to the Bank of China crude oil incident?Since the beginning of March, international oil prices have continued to slump. Many people think that oil prices will definitely rise, so they want to dip into the crude oil market, including BOC crude oil investors who choose to look at crude oil prices.The product is associated with international oil prices (WTI crude oil futures). On the evening of April 20, the US crude oil 05 contract showed the first negative settlement price in history.According to the announcement of Bank of China, Crude Oil Bao will follow -37.The official settlement price of USD 63 / barrel is priced.As a result, investors who chose to buy more, not only lost the principal, but also owed money to the bank, gradually expanding the amount by nearly 300%.Because the design of the product is unleveraged and 100% margin, analysts and investors did not expect that there would be a situation where the principal was lost and the bank money would be “backed up”.2. What product is Crude Oil?Businesses like crude oil treasure have a popular name called “paper crude oil”, which invests not in petroleum or crude oil futures.Crude oil futures have a relatively high investment biology and it is difficult for ordinary investors to participate.The characteristic of this product is that the transaction starting point is low, the transaction starting point is 1 barrel, and the minimum increment of the transaction is 0.1 barrel.According to the current price of crude oil futures, the price of a barrel of crude oil is more than one hundred dollars.Investors can choose to go long and short crude oil.If you think that crude oil will rise, you can choose to go long, and if you are not optimistic about future crude oil prices, choose to go short.Crude Oil is divided into two products linked to US crude oil futures and British crude oil futures. It supports the simultaneous trading of USD and RMB, and uses margin trading without leverage.3. Why do crude oil investors owe bank money?This product invests in crude oil futures in recent months. For example, investors who want to invest in crude oil in April bought all crude oil futures in May before the delivery of May Oil futures on April 21.On April 21st, customers can choose to move positions, close their current contracts, and open the next contract at the same time, which is the US oil June contract.Another option is the rolling difference treatment, which is to close all current contracts held by customers, and user income and replacement are the difference between the purchase price and the settlement price of Mayo ‘s May futures.For example, the purchase price is 140 yuan, the price of May oil contract is -266 yuan, and investors lose 406 yuan.It even lost 140 yuan in principal and 266 yuan in debt to the bank.4. What is the possible fuse this time?The first negative oil price in the crude oil futures market led to customer replenishment.On the evening of April 20, the U.S. crude oil futures price May WTI contract fell to -37 a barrel a day before expiration.63 US dollars / barrel, which translates into RMB 266 yuan.For example, the extreme case that investors could think of was a barrel of oil bought at 140 yuan, the expiration price became 0, and a barrel lost 140 yuan.But as soon as the negative oil price of “Living for a long time” appeared, it was equivalent to an overdue price of -266 yuan. For every barrel of oil investors bought, the principal was gone, and the bank owed 266 yuan.The reason for the negative oil price is that the current demand for crude oil in the market far exceeds the supply. The oil price is very low. Everyone has no place to store oil. The cost of refining is also higher than the price of the oil itself.The scene was very embarrassing.Therefore, extended delivery can only force liquidation, and negative prices appear.5. What is the latest progress?Several relevant investors said that in the early hours of April 23, Bank of China transferred all the principal from its “crude oil treasure” account.At the same time, investors also received a deposit deduction receipt today, informing them that the margin account has been cleared.Investors said that the total assets of the two-way treasure account were reset to zero yesterday, and were reset to zero this morning.6. How is BOC explained?The agreement said that the good margin fell to 20% strong, why not?Stop trading at ten o’clock in the evening, shouldn’t it be a shift at ten o’clock?Why is the delivery price according to the official settlement price?These three issues are the issues that investors are most concerned about at the beginning.On April 22, BOC customer service responded to the sauna and Yewang.For the position closing problem, the customer service stated that the Bank of China Crude Oil Treasury had a trading time of 9: 00-22: 00 on the last trading day of the contract. Banks would not force liquidation after 22:00, and the margin fell after 10 pm on the 21st.To less than 20%.On the evening of April 22, the Bank of China’s statement on crude oil treasure had another problem of liquidation, indicating that when the market price is not negative, the long position will not trigger a forced liquidation.For those who have determined to enter the position shift or expired rolling difference processing, the termination processing will be completed for the customer at the settlement price, no longer pay attention to the market, strong level.The price for the spread and settlement is set at -37.63 USD / barrel, the customer service responded that stopping trading at 10 pm does not mean shifting positions at 10 pm. The delivery price refers to the official settlement price of the exchange trading contract on the same day. The average price of 2: 28-2: 30 in Beijing timeSettlement.7. Is it illegal for BOC to move its position at the last minute?Banks such as Bank of China and ICBC have different settings for the last trading day of products linked to US crude oil, but they are indicated in the product agreement in advance. All along, BOC has completely docked with NYMEX (New York Mercantile Exchange)Regulations on the last trading day of each month of US crude oil.The advantage of the late shifting time is that before the expiration of US oil, investors can more fully choose when to shift positions, and then they can choose to buy and sell more time to expand the delivery time.It is definitely the possibility that there will be huge changes in the price of the continuous delivery period, because continuous delivery generally everyone will choose to invest in futures in the future, and a small number of transactions will cause changes in price fluctuations.8. Why are investors dissatisfied?First of all, before buying crude oil products, I do not know that there will be a situation where negative oil prices need to be reversed, and the risk is not well done.Second, investors gave saunas, and a screenshot from Ye.net showed that during the risk test before investing, some investors were found to be balanced investors. Such investors generally abhor high risks. The purpose of investment is to protect existing capitalTo obtain a stable appreciation.It is different from the current crude oil treasure.Third, in terms of risk control, the Bank of China’s product design does not consider the extremely extreme black swan situation.Fourth, there is no display on the 22nd margin account freeze.Normally, the delivery should be completed in the early hours of the 21st, but the Bank of China was delayed until the 22nd.When some investors transferred part of the deposit to the account at 8 pm on the 22nd, the Bank of China did not mark the account status, and frozen the funds transferred subsequently.9. Can crude oil futures June contracts be invested?The current price of the US oil June contract is around US $ 21 per barrel, which looks cheaper, but it may also copy the market of the May contract, which does not rule out the possibility of negative oil prices. It is not recommended to pick cheap without knowing the rules.Because of the concentration of crude oil, the gradual delivery cannot be closed, which may lead to negative oil prices.More importantly, the so-called “bottom bargaining” should be based on the familiar crude oil market.Sauna, Ye Wang Zhang Shuxin Editor Li Weijia Proofreading Li Shihui