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I have a question, is there a master trader can answer this?
The contract is, effectively, an agreement between buyer and seller. That agreement comes from the parties to that agreement, who execute and settle their contracts through a centralized exchange acting as counterparty.
Yes. See "open interest"
I highly recommend the primers and other educational materials on the CME website for these types of questions.
You're quoting from a post written over a year ago (this thread is pretty old), but OK:
Suppose you go into the market and put in an order to buy CL (West Texas Intermediate Crude). Someone else takes the other side with an order to sell. They …
The thing to understand is that futures contracts are not assets that, like stocks, already exist and that exchange hands when they are bought and sold. They are contracts, which exist because the parties enter into them. They have a relation to actual assets -- the underlying commodities or indices or currencies or whatever that they are agreements to buy or sell -- but, as contracts, they don't exist until someone enters into them.
This is why they are called "derivatives," which is also the case with option contracts, by the way: they exist because someone agreed to do something in the future.
Bob.
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Maybe obvious, but as an additional information point.
If A buys from B we have 1 open contract and then if C then buys from D we now have 2 open contracts.
but ...
If A buys from B we have 1 contract and then if B buys from C, we actually now only have 1 open contract, where A has bought from C, even though they never transacted with each ever.