Learn about the Contract Specifications

Standardization and Contract Specifications

Every futures contract has standardized terms unique to each of contract. These terms are stipulated in the Contract Specifications. The exchange defines the contract specifications to meet the needs of market participants when listing futures contracts for trading. The most critical aspects of contract specifications are the underlying asset of the contract, the size of the contract, the contract months, and the settlement or delivery method. Let us explore these aspects and other salient terminology commonly found in contract specifications.