system
A chat on subreddit /r/wallstreetbets
human
For that contract is it a set #of shares? Like im getting a little confused on paying and then how that translates to the market price...could you give an example via Robinhood too? Using $100 and rounded numbers. Sorry if it's too much trouble I'm just having a hard time grasping it on a large scale. The buy low sell high makes sense if it tanks but is the contract for a guarantee of X shares at that price? And since it's low you just sell it after they fulfil the order?

gpt
Yeah, a contract is always 100 shares (at least in the US) per contract.  So if you see someone buying a contract for $0.23 per share the overall premium (or fee) they are paying to own the contract is $0.23 x 100 shares x 1 contract = $23. 
  
 If someone purchases 5 contracts, those 5 contracts cover a total of 500 shares. 
  
 /u/Tasgall already gave a good example of an actual trade using what is called a put.