What Are the Key Components of a Futures Contract?
Each futures contract includes the following key components:
Contract Size: The quantity of the underlying asset covered by the contract. Expiration Date: The date on which the contract must be settled. Tick Size: The minimum price movement of the contract. Margin Requirements: The amount of money that must be deposited to open a position. Settlement Method: Specifies whether the contract is settled by physical delivery of the asset or by cash settlement.