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Each futures contract specifies is the quantity of the product delivered for a single contract, also known as contract size. For example: 5,000 bushels of corn, 1,000 barrels of crude oil or Treasury bonds with a face value of $100,000 are all contract sizes as defined in the futures contract specification.

The exchange defines the contract size to meet the needs of market participants.

What Is Contract Size? The term contract size refers to the deliverable quantity of a stock, commodity, or financial instrument that underlies a futures or options contract. It is a standardized amount that tells traders the exact quantities that are being bought or sold based on the terms of the contract.

The 'contract date' is the date often written on the cover or last page of the contract. The 'signature date' is, unsurprisingly, the date written next to or below the signature of each party, showing the date they signed the contract.

A lot in terms of options represents the number of contracts contained in one derivative security. One equity option contract represents 100 underlying shares of a company's stock. The lot for one options contract is 100 shares.

What Is Contract Size? The term contract size refers to the deliverable quantity of a stock, commodity, or financial instrument that underlies a futures or options contract. It is a standardized amount that tells traders the exact quantities that are being bought or sold based on the terms of the contract.

To determine the total contract size, all you need to do is simply look at the market information for the market you're trading. This information will be available directly from your trading platform. Contract sizes are standardized across the industry.

Contract Sizes Each standard lot traded in the Forex market is a 100,000 (of the base currency) contract. In other words, when trading one lot in a standard account, a trader is essentially placing a $100,000 trade in the market. Without leverage, many investors would not be able to afford such a transaction.

Once you know what your maximum risk is, you can determine your position's size. You can determine the size of a position by dividing that maximum risk amount into the total amount of your portfolio you have set aside for an option trade.