Point Value
The dollar P&L impact of a full one-point move in a futures contract. Equal to the contract multiplier.
Formula
Point Value = Contract Multiplier (= Tick Value × Ticks per Point)
Point value is simply the contract multiplier expressed as "dollars per one full point." For ES, one full index point = $50. For NQ, one point = $20. For YM, one point = $5.
Since one point contains multiple ticks (e.g. 4 ticks per point in ES), point value = tick value × ticks per point. Traders often cite point value for setups ("my target is 10 points on ES = $500/contract") and tick value for scalp precision.
Related Terms
Contract Multiplier
The dollar amount assigned to each index point (or unit) of a futures contract, converting price moves into P&L.
BeginnerFutures Contract
A standardized, exchange-traded agreement to buy or sell an asset at a fixed price on a set future date, settled daily via mark-to-market.
BeginnerTick Value
The dollar P&L impact of one minimum price move in a futures contract. Tick Size × Contract Multiplier.
Beginner