It is very important to understand the concept of point value when conducting foreign exchange transactions. Point value is a key concept in foreign exchange trading, which represents the change of unit price of a transaction. So when calculating foreign exchange profit and loss, the point value is very important. The size of the point value depends on the exchange rate of the currency pair and the number of transactions.

In foreign exchange transactions, each currency pair has its own point value. Usually, the point value is used to calculate the profit and loss, as well as the transaction volume required to achieve a specific profit target. For example, in the euro/dollar currency pair, if the exchange rate rises from 1. 1200 to 1. 1205, the spread is 5 points. If you have a position of 10000, you will get a profit of $5.

The value of the points also depends on the currency of the trading account. For example, if your account is based on USD, the value of each point in the Euro/USD currency pair is 10 USD. However, if your account is based on euros, then each point value is 8.45 euros.

In foreign exchange trading, it is very important to understand the importance of point value. It is the basis of calculating profits and losses and the trading volume needed to achieve specific profit targets. Familiarity point value can help traders decide when to enter and leave at what trading odds, thus avoiding excessive risk and maximizing profits.