Last updated
Contracts are a term of reference describing a unit of trading for a future or options.
In futures trading, the contract is an agreement between two parties to make and take delivery of a specified commodity on a given date at a predetermined location.
In options trading, the contract an agreement by the writer either to buy (if a put) or to sell (if a call) a given asset at a predetermined price until a certain date. The holder of the option is under no obligation to act.
In crypto options, one contract usually means the option corresponding to 1 unit of the underlying (e.g 1 BTC or 1 ETH) as compared to 100 shares in 1 equity option.
Last updated