Contract Size (Futures)

Contract Size (Futures)

Definition
In futures trading, the standardized amount of the underlying commodity or financial instrument is represented by a single contract.

Example

  • Corn futures: 5,000 bushels per contract
  • Crude Oil futures: 1,000 barrels per contract
  • E-mini S&P 500 futures: $50 x index value

Key Points

  • Value per Tick: Contract size determines the dollar value of each minimum price fluctuation (tick) of the futures contract.
  • Risk Management: Understanding contract size is crucial for calculating trade risk and appropriate position sizing.

 

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