(plural basis points)
- (finance) One hundredth of one percentage point
basis point - Investment & Finance Definition
One-hundredth of a percentage point (1/100 of 1%). One percentage point equals 100 basis points. This term is commonly used in a trading context for futures contracts or when talking about price movements of bonds and loans. Also used in the context of the Federal Reserve moving the federal funds rate or the discount rate by 25 or 50 basis points.