CSI displays 3 different types of price values related to futures markets. Usually these values can be computed from the contract size, units, conversion factor, and minimum tick.
Full Point Value
This represents the contract value per 1.0 unit of currency.This is the general formula:
FullPointValue = ContractSize x UnitOfMeasurement
For example, CME Live Cattle contract size is 40000 lbs and units are cents per pound.
FullPointValue = ContractSize x UnitOfMeasurement = 40000 lbs x cents per pound = 40000 cents = $400.00
Alternatively this formula can be used:
FullPointValue = FranctionalPointValue x ConversionFactorDivisor
For example, the CME website contract specifications states that the FractionalPointValue is $4.00. The conversion factor is +2 which means the ConversionFactorDivisor is 100.
FullPointValue = FranctionalPointValue x ConversionFactorDivisor = $4.00 x 100 = $400.00
The conversion factor divisors:
-9 =640
-8 =320
-7 =320
-6 =256
-5 =128
-4 =64
-3 =32
-2 =16
-1 =8
0 =1
1 =10
2 = 100
3 = 1000
4 = 10000
5 = 100000
6 = 1000000
7 = 10000000
8 = 100000000
Fractional Point Value
This represents the contract value of the pricing increment precision unit.
FranctionalPointValue = FullPointValue / ConversionFactorDivisor
Tick Value
The tick value is the minimum price fluctuation of one contract.
TickValue = FractionalPointValue x MinimumTick
For example, CME Live Cattle has a minimum tick of 2.5 and the FractionalPointValue is $4.00.
TickValue = FractionalPointValue x MinimumTick = $4.00 x 2.5 = $10.00
