What is a difference between Contracts and lot size?

[InwestorWkapeluszu]

Hello,

What is a difference between Contracts/Positions and a lot size?

Is it like: 3lots = 3 contract for 1 lot ?

 

[options-george]

A "contract" and a "lot" are the same things - they are used interchangeably.
The terms come from reference to futures contracts.

A trader might be long 3 lots - it's the same as saying the trader is long 3 contracts.

A "position" refers to someone's net exposure in an instrument and is generally always accompanied by the trade's directional bias, for example: 'I have a long position in EURUSD. My position comprises 3 contracts.'

Hope that helps.

 

[InwestorWkapeluszu]

A "contract" and a "lot" are the same things - they are used interchangeably.
The terms come from reference to futures contracts.

A trader might be long 3 lots - it's the same as saying the trader is long 3 contracts.

A "position" refers to someone's net exposure in an instrument and is generally always accompanied by the trade's directional bias, for example: 'I have a long position in EURUSD. My position comprises 3 contracts.'

Hope that helps.

Yes, that really helps! You made it so easy for me thank You

 

[Beast45]

A "contract" and a "lot" are the same things - they are used interchangeably.
The terms come from reference to futures contracts.

A trader might be long 3 lots - it's the same as saying the trader is long 3 contracts.

A "position" refers to someone's net exposure in an instrument and is generally always accompanied by the trade's directional bias, for example: 'I have a long position in EURUSD. My position comprises 3 contracts.'

Hope that helps.

Thankyou for sharing that example.

 

[marcela 2020]

A lot is a unit of measurement for a product at auction or exchange. Lot size refers to a certain volume of goods, which is really convenient for trading.
For example, in an auction, the lot is usually a specific item: A work of art. or if it is an exchange, generally, a lot represents a certain amount of a good: 100 barrels of oil

 

[tomorton]

Just so long as you do not conclude that therefore when you go long on Brent, an actual lorry is going to come round loaded with actual barrels of actual oil.

Though I'd love to see that.