Definition
A Basis Point (bp) is a unit of measurement equal to 0.01%, used to denote changes in interest rates, yields, or other financial percentages.
Related Services
Basis points are common in investment analysis, financial product pricing, and central bank communications.
Problem and Application
Understanding basis points is crucial for financial professionals, as small changes can have significant impacts. They simplify communication about percentage changes.
Conclusion
Basis points offer a standardized and precise way to express financial changes, ensuring clarity in professional discussions.
