Contract Size

Trading Basics

Contract Size

The minimum amount a product can be traded in. Normally these are standardised, like a lot in fx.

Other Trading Basics

Cost of Carry

The cost to a trader of maintaining a position. This might be in form of overnight financing on simple CFD trades but can also include the costs to insure, transport or finance on more complex trades.

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CFD

Contract for difference.

An OTC financial derivative where the counterparties agree to exchange the change in a price.

No underlying assets are exchanged.

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