# basis point

basis point a unit equal to of 1 percent: used in measuring changes in interest rates, exchange rates, etc.

## basis point

noun

*Abbr.*

**BP**

One one-hundredth of a percent, used especially in measuring yield differences among bonds.

## basis-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.