CONTRACT SIZE & MULTIPLIER

[sunandaC]

CONTRACT SIZE & MULTIPLIER :


To arrive at the value of contract (Contract size), you would have to

multiply the index with a no. called multiplier, which would be standard

for index and defined in the contract specification before the introduction

of trading in a contract.



BSE has proposed its multiplier to be Rs. 50 for trading in BSE sensitive

index future contract.


For instance, if one month future contract on BSE sensitive index is

trading at 6000 when contract multiplier is Rs. 50, contract size would be

Rs. 3,00,000 (6000*50). We may say that multiplier is price per point of

index.

 

[rosemarry2]

CONTRACT SIZE & MULTIPLIER :


To arrive at the value of contract (Contract size), you would have to

multiply the index with a no. called multiplier, which would be standard

for index and defined in the contract specification before the introduction

of trading in a contract.



BSE has proposed its multiplier to be Rs. 50 for trading in BSE sensitive

index future contract.


For instance, if one month future contract on BSE sensitive index is

trading at 6000 when contract multiplier is Rs. 50, contract size would be

Rs. 3,00,000 (6000*50). We may say that multiplier is price per point of

index.

Hi Sunanda,

Please check attachment for Project on Clearing Corporation of India Limited, so please download and check it.