Who creates the future contact?

Question

When a new series of future contract is started, who detemines the price of the contract? Who will assume the sell side?

Answer 1

Actually, anyone can sell a contract if they have established a futures account and have sufficient margin in the account.  The price of the contract is determined by supply and demand.  bid and ask. In other words if you offer an oil contract for $140 a barrel and you have the lowest offering price for that contract, if anyone wishes to buy they will have to buy yours but if someone else offers a contract for 139.75 then that is the one that will get purchased.