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Use of “point value”

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JerKha

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2 weeks ago #277656

Hi everyone,

Can someone explain to me what is the use of point value ? (eg screenshot)

Because to me “point value” depends on the price of the asset and vary during time so why is it set here and on adding instrument menu ?

Thanks

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tomas262

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2 weeks ago #277670

Hello,

the point value refers to the full contract size and a monetary value change per each full numeric point. As an example consider these:

EURUSD – point value = 100,000 USD … price change from 1.2530 to 2.2530 equals = 100,000 USD per 1 full lot

AAPL stock – point value = 1 USD … when you buy 1 AAPL stock and the price moves from 250.1 to 251.1 then you made 1 USD

CL (Crude Oil) futures – point value = 1,000 USD … you buy 1 contract at 120.00 and sell at 110.00 … you lost 10,000 USD per each contract

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JerKha

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2 weeks ago #277691

Ok so I guess that all points values are in $USD ?

As you see in screenshot below for EURGBP it is set to 132000 so from what I understand it would be :

EURGBP – point value = 132,000 USD … price change from 0.85 to 1.85 equals = 132,000 USD per 1 full lot

Let me know if my understanding is bad but when I backtest on multiple years EURUSD changes along with EURGBP so point value isn’t the same during these years.

For example right now EURGBP is 0.85 and EURUSD is 1.05 which makes GBPUSD 1.23 (point value for EURGBP would be 123000).

During backtests on EURGBP will it use EURUSD (or GBPUSD) to have the right value at a given time in the past or will it use point value for the whole period ?

Thanks for your help

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tomas262

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2 weeks ago #277700

Not all markets point value is USD. EURGBP for example has the point value denominated in GBP. It is 100,000 GBP

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