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The video tutorial explains contract sizes and trading volumes in phalanx transactions. It defines four types of lot sizes: a nano lot equals 100 units of currency, a micro lot equals 1,000 units, a mini lot equals 10,000 units, and a standard lot equals 100,000 units. It notes the relationships between these sizes: one standard lot equals ten mini lots or 100 micro lots, and one micro lot equals ten nano lots. The contract size is determined by the base currency of the pair. For instance, trading one mini lot of the euro-dollar pair implies a volume of 10,000 euros, and trading one standard lot involves 100,000 units of the base currency.
