The present invention provides a system for managing waste oil, which comprises at least one container wherein each container has an identifying element disposed thereon for recording information with respect to the waste oil provider, container, and quality of the waste oil. By means of the system, the present invention further provides a method for managing and trading the waste oil, which refers to a business method for implementing transaction such as sale of waste oil or exchange between waste oil and daily necessaries according to the information of the identifying element whereby the business center can control the logistics, cash flow and information flow easily and efficiently so that the waste oil provider can have service of transaction easily.