Contract
An agreement between two parties to trade something on set terms.
In plain English
An agreement between two parties to trade something on set terms. In markets, also the standard unit of a futures or options trade.
A contract is a deal with fixed terms: what, how much, at what price and when. On exchanges, a 'contract' is also a standard package, for example one euro futures contract always represents the same amount of euros.
In retail forex the equivalent unit is the lot. Know exactly how big one of your contracts is before you trade it.
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