Contract Multiplier
The number of underlying units controlled by one options contract.
Explanation
For standard U.S. equity options, the multiplier is usually 100 shares per contract. However, adjusted contracts, mini contracts, and some index products may use different multipliers. Accurate P&L, margin, and risk calculations require applying the correct multiplier.
Example
An option quoted at $2.40 with a 100 multiplier costs $240 per contract before fees.