- 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.
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.