What is a contract in trading?

The term Contract is used by some Spread Bet and CFD brokers to denote the unit size of an underlying market. Forex markets usually have a Contact Unit size of $100,000. Traders need to know how to convert Contracts so that they know exactly how much they are risking on each trade.

Categories: E-mini Trading FAQs, Forex FAQs, Index Trading FAQs, Learn to trade

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