Point value — The dollar value of a one-point move in a futures contract, most often quoted for index products.
How point value works in prop trading
Point value is tick value scaled up to a whole point. The E-mini S&P 500 is $50 per index point (four ticks at $12.50); the Micro E-mini is $5. Index traders usually think in points rather than ticks because charts and levels are quoted that way, so it is the more natural unit for planning a trade.
Both units describe the same thing, and mixing them is a common and expensive error. A trader who plans a 10-point stop on the E-mini and calculates the risk using the $12.50 tick value arrives at $125 instead of $500 — a four-fold understatement that turns a sensible position into a drawdown breach.
Key points
- E-mini S&P 500 is $50 per point; Micro E-mini is $5 per point.
- One point equals four ticks on the E-mini S&P, so point value is four times tick value.
- Mixing points and ticks in a risk calculation understates risk by the tick-per-point ratio.
- Index products are usually planned in points; energy and rates more often in ticks.
Example
A 10-point stop on one E-mini S&P contract risks $500 (10 × $50), not $125.
Also known as
- dollar per point
- point worth
- index point value
Frequently asked questions
How much is one point on the E-mini S&P 500?
$50 per contract on the E-mini and $5 on the Micro E-mini. One point is four ticks, each worth $12.50 and $1.25 respectively.
Should I calculate risk in points or ticks?
Either, as long as you use the matching value. Points are more natural for index products because levels are quoted that way. What matters is not mixing a point-based stop with a tick-based value.
Put this into practice
Point value is described here as a plain-language educational definition. Firms, platforms, and account programs may apply different conditions or calculations. Verify the current official terms before using this definition to make an account decision.