Contract Size

In futures trading, the term contract size denotes the quantity of underlying assets represented by a derivative, such as a contract for difference (CFD) or an option.

Example: You buy a future which is based on a EUR/CHF excahnge rate CFD. The CFD in turn is based on 100,000 Swiss francs which act as its underlying assets. Those 100,000 Swiss francs make up the contract size of the forward contract.

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Daniel Dreier is editor and personal finance expert at moneyland.ch.

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