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  • When termed futures are released in the market, such as XBTU21 (Bitcoin futures for the 3rd quarter), how are they sold in the market?
  • Stocks, for example, are sold through IPO when they are first released in the market. Do futures also go through the similar thing as IPO?
  • I guess the futures should go through the same thing as IPO to determine its price, between buy side and sell side. But I haven't heard of anything as futures' IPO.
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Futures are not "things" to sell. When you "buy" or "sell" a future, you enter into a contract with a counterparty. So the exchange releasing a future just means that they create a record in their system of a particular futures contract. That's all. Nothing needs to be "created" other than that.

The market (not the exchange) determines the price of the future just like a stock - bid and ask orders are made, and market orders are matched up with the order book just like stocks in the secondary market.

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  • Can you explain how futures orders are filled between people longing and shortinf futures? For example, as far as i know, there is no partial fill in leveraged futures, unlike spot long orders which can be partially filled. (If I order 100 AAPL stocks at 100 USD, for instance, it can be the case that only 50 orders are filled because there is no available AAPL stocks at 100 USD). As such, how to fill the future orders must be different from that of stocks. Can you explain more on this part as well, please? – Eiffelbear Mar 20 at 9:41
  • If I order a 100x leveraged long futures on Bitcoin, whose total value is 10000 USD (which means my initial deposit is just 100 USD), should I wait for another person whose short is exactly 10000 USD to fill my 100x leveraged long futures order? – Eiffelbear Mar 20 at 9:43

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