What are contracts in stocks
Define Trading Contract. means any forward, futures, option, swap, hedge, collar, cap, floor or similar contract regarding electric energy or the generation, In terms of stock options, a typical options contract consists of 100 shares of underlying stock. Expiry dates can be chosen in various months, and the stocks usually expire on the third Friday of that month. As the name states, options contracts are optional, and that is the most important aspect of them.