point

1. Banking: One percent of the amount of a mortgage loan, also called a discount point. US banks charge a fee expressed in points to increase loan income without exceeding the legal interest rate limit on home mortgages.

2. Currency trading: Fourth digit after a decimal point in exchange rate quotes.

3. Futures trading: 1/32nd of a percentage point, the lowest fraction by which a price can move upwards or downward. Also called a 'tick.'

4. Securities trading: (1) One dollar change in the price of a share (stock), each increment equals 1/8th of a point or 12 1/2 cents. (2) One percent change in the price of a bond. Bond yields, however, are expressed in basis points.

5. Typography: Unit of vertical and horizontal measurement equal to 1/12th of a PICA or approximately 1/72nd of an inch (0.013 inch or 0.35 millimeter). Didot point (used primarily in mainland Europe) equals 0.014 inch or 0.38 millimeter. Character spacing, word spacing, line spacing, and height of type fonts, is measured in points. See also point size and Q.