What is a point in trading?

The term Point is the smallest value of a market to the left of the decimal point. Index markets are usually priced in points. With CFD and Spread Bets brokers this usually the smallest value that is traded. Generally, we use the term Points when trading Index markets because brokers of these markets price the market without a decimal point. For example, a 20 point long move on DAX 30 from 12,400 is a price of 12,420.

Categories: E-mini Trading FAQs, Forex FAQs, Index Trading FAQs, Learn to trade, Trading the DAX

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