Aggregate Exercise Price

The aggregate exercise price for a futures contract represents the total amount it would cost to exercise the contract, given the number of units and the strike price spelled out in the contract.

Got it? Maybe not. Ok...we'll break it down a bit.

Futures trading consists of contracts. These contracts provide the option for traders to buy or sell an asset at some point in the future at some pre-set price. This is expressed as such-and-such number of something at such-and-such a price.

So, as an example, a contract might call for the purchase of 100 shares of Big Fun Tech Company Inc. (BFTC) at $10 a share at some point in the future. The $10 a share is referred to as the "strike price." The aggregate exercise price would be the total amount this contract would cost to fulfill, if the option is exercised. In this case, it would be the 100 shares of BFTC times the $10 per share strike price, or $1,000.