Forex Trading >

Basis Point

A basis point (bp) is 0.01% in interest rate.

For instance, the difference between 5.01% and 5.00% will be 1 point.
Basis points are used among other things to measure changes in the yield of a bond or moves in the money market.
The type of interest rate has to be specified (eg bond yield, zero-coupon yield, Act/360 money market rate, Act/365 money market rate, etc).

bassi, bsais
See also

• Forex Scams
• Bid/offer spread
• Foreign Exchange Market
• Currency
• Dividends
• Euro
• Exchange Rate
• Foreign Exchange Options
• Currency Future
• Futures Contract
• Futures Exchange

• Summary Measures of the Foreign Exchange Value of the Dollar
• Forex and Commodities Futures and Options. What to know before you trade
• Online Forex Trading is Quickly Becoming a Booming Business
• Earning Money From Forex
• Introduction to Forex
• FOREX 101: Make Money with Currency Trading

This article is licensed under the GNU Free Documentation License.
It uses material from the Wikipedia article "Basis Point".