What Is a Basis Point? A Simple Guide to BPS

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2026-09-01 07:05:54 -

In investment or trading, you might have heard about the term 'basis point' but not known its definition and its significance in finance. A basis point is a fixed amount of change in interest rates, bond yields, and other financial percentages. One basis point is equal to 0.01%, which is 1/100 of a percentage point. Knowing what is a basis point mean in finance comes in handy when evaluating...

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