Derivatives
Contract Size
Definition
What is Contract Size?
The amount of underlying exposure represented by one derivativeA contract whose value depends on an underlying asset, rate, index, or event. contract.
Example in practice
How This Looks in Practice
One option contract may represent 100 shares.
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Related Terms
Derivatives
Derivative
A contract whose value depends on an underlying asset, rate, index, or event.
DerivativesUnderlying Asset
The asset, rate, index, or reference on which a derivative's value is based.
DerivativesNotional Amount
The reference amount used to calculate derivative payments, which may exceed the cash initially exchanged.
Derivatives StrategiesCovered Call
A strategy that owns the underlying asset and sells call options against it.