In futures trading, the value of a contract is expressed by the product of a certain monetary amount and the underlying index. This certain monetary amount is determined by the contract and is called the contract multiplier.

For example, the multiplier of stock index futures contract is stipulated by the exchange when designing the contract, giving each index point a fixed value. The contract multiplier determines the size of the stock index futures contract, and a moderate contract size is conducive to enhancing the liquidity of the stock index futures market and reducing transaction costs.

Generally speaking, the larger the contract scale, the smaller the ability of small and medium-sized investors to participate, the greater the potential risk of each contract, and the lower the activity of contract trading. If the contract scale is too small, it will increase the transaction cost, thus affecting the enthusiasm of investors to hedge by using stock index futures trading.