Do you refer to a conical center finder on one end of an edge finder? Everyone seems to use theirs differently for centering up punch marks and small holes.
Tony Wells,the administrator,and a machine shop owner, gets his punch mark close enough that he can stick the center point into it. Then,he moves the X and Y axis until his fingernail doesn't catch on the mating edges of the center finder at positions 90º apart.
Then,he considers the punch mark to be accurately located on center with the spindle.
I get mine centered until I can measure across the mating joint with a micrometer at 2 places 90º apart,and get .500" on either side. Then,I consider the punch mark on center.
I hope this makes sense.