What is commission per contract in Paper Trading
In Paper Trading, commission per contract is a method of calculating commissions for trading futures and options, based on the number of contracts rather than their price.
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How does it work
Unlike a commission calculated as a percentage of the transaction or a fixed amount per transaction, this commission is charged for each contract involved in the trade.
The formula for calculating the commission per transaction:
Commission = (Number of Contracts) × (Commission per Contract)Other rules include:
- The commission applies only to futures and options trading. For other instruments, you can use a fixed or percentage-based commission type in the "Other" section
- The commission amount does not depend on the contract value
- The commission is charged both when opening and closing a position
- The commission is inactive by default
How to set it up
- Log in to Paper Trading
- Go to account settings or the dialog for creating a new account
- Activate the "Futures & Options" checkbox in the commission settings section
- Specify the commission amount (per contract). The commission is charged in the account currency
- Click "Save" in the account settings dialog or "Create" in the new account creation dialog
Example of calculating the commission per contract
If you set the commission to $1.25 per contract and buy 3 ES futures contracts, the commission for this transaction will be:
3 contracts × $1.25 per contract = $3.75This feature makes your derivatives trading simulation closer to real market conditions. For more practice, visit our Competitions hub and participate in the risk-free trading competition to test you skills.
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