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Basis point - Financial definition

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Translations:      FR  point de base (n.m.)     ES  punto básico (n.m.)     DE  Basispunkt (n.m.) 

Concise definition of the term basis point

The unit by which interest rate margins or spreads are expressed. By convention, a basis point is worth one-hundredth of one percent or 0.01%.

Comprehensive definition of the term basis point

If an interest rate, for example, rises from 2.00% to 2.25% it is said to have increased by 25 basis points.

Additional information related to this definition

Definition of related term

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