<topic sku="dlxbiz" tNum="289669" author="sallyh" xmlns="x-schema:hhTopicSchema.xml"><index><title>Learn what one option contract represents</title><category fLocale="cdn">investing</category><klink type="cncpt">Tell me what one option contract represents</klink></index>
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<p>Stock options are traded in units called contracts. One option contract generally represents the right to buy or sell 100 shares of the underlying security. In the <emph>Quantity (Contracts)</emph> box, be sure to enter the number of contracts, not the number of shares of the underlying security.</p>