In the past two days, the BOC crude oil treasure incident can be described as a boiling fire, which has also made investment supervision and investment risks valued again, and sounded the alarm for speculators who want to bottom out in the epidemic environment.
I guess in fact many people have not yet figured out what BOC Crude Oil Treasure is, so let's briefly introduce it.
Crude Oil Treasure is a book-entry financial derivative linked to crude oil futures, mainly for the Chicago Mercantile Exchange's lightweight low-sulfur crude oil futures contract (WTI). After the investor confirms the purchase and sale in the BOC crude oil treasure investment account, the bank of China will go to the Chicago Mercantile Exchange to complete the corresponding futures transaction according to the transaction request. In this process, it is the Bank of China that actually holds crude oil futures, not the customers of crude oil treasure.
Crude oil treasure caused huge losses in this "negative oil price" event, of course, both sides have a reason.
Crude oil treasure side. The first is that there are problems with the product design and there are major loopholes. Risk control in extreme cases is not taken into account. Although there are 20% margin liquidation measures, due to the loss of market liquidity, it cannot play a role in liquidation. More importantly, in terms of operation, bona fide did not initiate a move when the risk was visible, and its account crude oil agreement had a clear April 20 move, but in the end it did not move, but settled at a price of -37.63 US dollars. On the other hand, ICBC and CCB have completed the operation of moving the warehouse, although the customer is also a heavy loss, but at least it is not through the warehouse, resulting in devastating losses.
And from the user's side. Affected by the epidemic, the overall asset price of the market has shrunk significantly, and many people have the heart to read the bottom. The international oil price has fallen all the way, so that many people have set their eyes on the crude oil market and looked for opportunities to enter the market. Based on the endorsement of bona fide, many people chose crude oil treasure.
But these bottom-reading people enter the futures market with the knowledge of the stock market, and their worst investment expectation is nothing more than the principal is not guaranteed. Most people don't even know the basic rules for closing and moving positions, and some investors even complain to banks about the decrease in the number of positions held after the move. Some of the investors of the upstream crude oil treasure do not know how to change the contract expiration method, nor do they know that they can manually close the position before the expiration date, hold the position but are willing to be an ostrich, forget the risk, and forget to take the initiative to stop loss and save themselves in time.
This "negative oil price" is really a lesson for investors and institutions such as the Bank of China. Investors should be in awe of investment, let alone speculate in completely unfamiliar markets and take responsibility for their own money. Investment institutions should strengthen supervision and improve professional level, although China's financial market has become more and more mature, but relatively foreign, we are still tender. The tuition fee this time is undoubtedly sky-high, and how the two sides will bear it in the end remains to be handled. Finally, there is an old saying: investment is risky, and you need to be cautious when entering the market.