Basis Point - BPS


Basis Point - BPS
A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly used for calculating changes in interest rates, equity indexes and the yield of a fixed-income security.

The relationship between percentage changes and basis points can be summarized as follows: 1% change = 100 basis points, and 0.01% = 1 basis point.

So, a bond whose yield increases from 5% to 5.5% is said to increase by 50 basis points; or interest rates that have risen 1% are said to have increased by 100 basis points.


Investment dictionary. . 2012.

Look at other dictionaries:

  • basis point — A basis point is a unit of measure used in describing interest rates. One basis point is equivalent to 1/100th of a percent, or 0.01%. For example, if the prime rate increases by 50 basis points, it means that the rate has risen 0.5%. Category:… …   Law dictionary

  • Basis Point — Базисный пункт величина равная одной сотой процента (0,01%), используемая для отображения изменения в норме дохода финансового инструмента (ценных правительственных бумаг, процентных ставок, акций компаний). Необходимость измерения столь малых… …   Финансовый словарь

  • basis point — basis points N COUNT: usu pl In finance, a basis point is one hundredth of a per cent (.01%). [TECHNICAL] …   English dictionary

  • basis point — n. a unit equal to 1/ 100 percent: used in measuring changes in interest rates, exchange rates, etc …   English World dictionary

  • Basis point — A basis point (often denoted as bp or unicode|‱; rarely, permyriad) is a unit that is equal to 1/100th of a percentage point. It is frequently used to express percentage point changes less than 1. It avoids the ambiguity between relative and… …   Wikipedia

  • Basis point — In the bond market, the smallest measure used for quoting yields is a basis point. Each percentage point of yield in bonds equals 100 basis points. Basis points also are used for interest rates. An interest rate of 5% is 50 basis points greater… …   Financial and business terms

  • basis point — (bp)    a unit of proportion equal to 0.01% or 10 4. The basis point is used in finance to measure small fluctuations in interest rates and the rates of return on investments. Prior to the introduction of the basis point, these fluctuations were… …   Dictionary of units of measurement

  • basis point —   Eng. Punto base   Il punto base o basis point indica l unità minima di variazione di un determinato indice o mercato preso in considerazione …   Glossario di economia e finanza

  • basis point — point One hundredth of one per cent; this unit is often used in finance when prices involve fine margins. See also tick …   Big dictionary of business and management

  • Basis point —   A one one hundredth of one percent (i.e., 0.01%), used to express interest rates and bond yield differentials (7.500/o 7.15% = 0.35% or 35 basis points). It is a measure of the difference between a base rate and another rate. The points are one …   International financial encyclopaedia

  • basis point — Fin one hundredth of 1%, used in relation to changes in bond interest rates. Thus a change from 7.5% to 7.4% is 10 basis points …   The ultimate business dictionary


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