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FuturesBeginner

Contract Size

The fixed quantity of the underlying asset controlled by one futures contract, set by the exchange.

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Formula

Notional Value = Contract Size × Futures Price

Contract size (also called contract unit) defines exactly how much underlying one futures contract represents. It is non-negotiable — the exchange standardizes it so that all market participants trade identical units.

Common contract sizes: ES = 50× the S&P 500 index; NQ = 20× Nasdaq-100; CL = 1,000 barrels of crude oil; GC = 100 troy ounces of gold. The micro versions (MES, MNQ, MCL, MGC) are exactly one-tenth of the standard.

Multiplying contract size by the futures price gives the full notional value — the economic exposure you carry per lot.

Example

CL (WTI crude) has a contract size of 1,000 barrels. At $80/barrel the notional exposure per contract is $80,000. A $1 move in crude = $1,000 P&L per contract.

#futures#contract-specs

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