In Todays Video, Mike talks about Contract Multipliers.
We generally discuss asset prices in single units. We discuss the price of a stock “per share.” We discuss the price of oil “per barrel,” and we discuss the price of gold and silver “per ounce,” but generally, a single options (or futures) contract doesn’t represent a single share, barrel, or ounce. Instead, most equity options represent 100 shares, an oil future contract commonly represents 1,000 barrels, and a silver future represents 5,000 ounces.
