Investor Glossary-contract sizeInvestor Glossary-contract sizeInvestor Glossary-contract sizeInvestor Glossary-contract sizeInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Contract Size

The HTML to link to this page
 

Contract size is the deliverable amount on a contract. The quantity of goods or commodities deliverable on any future, forward or option contract is, then, the contract size. IMM contract size for the British pound is 62,500 British pound sterling, IMM contract size for the euro is 125,000 euros, and IMM contract size for the yen is 12.5 million yen. Contract size varies in measurement units. The contract size for gold on the COMEX is 100 oz (ounces); the contract size for soybeans on the CBOT is 5K BU (bushels), and contract size for brent crude on the NYMEX is 1,000bb (barrels). Not all contracts including a contract size settle in actual delivery, but contract size is specified anyway even if the closest deliverable or cash settles the contract. This is because uniform contract size allows goods and commodities and options to trade in standardized market form. Contract size is, then, what allows massive bulk trading in commodities and options on global exchanges.



Rate this contract size definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: labor relations, balance sheet, VIX, implied volatility, current ratio, reverse mortgage, risk management, minority interest, option premium, inflation, EBITDA, average price per share, ex-dividend date, annual return, 144a, wholly-owned subsidiary, irrevocable trust, Key Rate Duration, APR, stock split, debt service coverage, deferred tax, 1031 exchange, LIBOR, real GDP, Zero Cost Collar, liquidity ratio, 1035 exchange, FTSE, phantom income, covered put, in escrow, stock market close, per diem, margin rate, open position, quality assurance, dividends payable, deferred revenue, required rate of return, FICO score, retained earnings, diluted share, 401a, class C shares, ex-dividend, command economy, limit order, cancelled check


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use