The term point value is used in the secondary market, more specifically in futures and options trading. The meaning of this term and its significance is given hereunder.
In futures trading, the point value is the value of each point of price movement in a contract. It is used to calculate the profit or loss of a trade. The point value is determined by multiplying the contract size (e.g. number of barrels of oil, bushels of wheat, etc.) by the minimum price fluctuation (i.e. tick size) for the contract. For example, if a crude oil futures contract has a contract size of 1,000 barrels and a tick size of $0.01 per barrel, the point value would be $10 per point ($0.01 x 1,000). This means that a one-point move in the price of the contract would result in a $10 gain or loss.