Basics
Point
The smallest price increment in a trading instrument.
Full Definition
A point represents the smallest possible price movement in a trading instrument. In forex, this often refers to a pipette (0.00001). In indices and stocks, a point typically equals $1 of movement. The term varies depending on the asset being traded.
Example
The S&P 500 moved 50 points today, meaning a $50 movement per contract.
Related Terms
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