A three-point edit is one in which a source clip is marked with both in and out points and a record clip is marked with either an in or out point. The points on the source clip mark the shot that is to be brought into the record clip, and the point on the record clip marks where it will go. The remaining material in the source clip is entered into the record clip as head and tail frames.
If you mark an in point on the record clip, the edit goes forward from that point. If you mark an out point on the record clip, the edit back-times from that point.
You can perform a three-point edit as either an insert or an overwrite edit.
You can also do a three-point edit with in and out points marked on the record clip, and either an in point or an out point marked on the source clip. In that case, the length of the source clip insert or overwrite is determined by the length between the in and out points on the record clip.
To perform a three-point edit:
The source clip is recorded to the timeline.