basis point
One percent's hundredth
A basis point is one hundredth of a percentage point—0.01%.
Used in finance to express small changes in interest rates, bond yields, or other percentages where precision matters: The Fed raised rates by 25 basis points.
A full percentage point equals 100 basis points.
The term avoids ambiguity when discussing percentage changes of percentages.
To distribute widely
- yieldProduce or relinquish
- couponCertificate for reduced price
- treasuryStored organizational funds
- mortgageSecured home loan
portfolio · equity · debt · capital markets · trading · liquidity · credit · securities
National monetary authority holdings
- central bankNational currency management institution
- monetary policyCentral bank economic controls
- prime rateBank's benchmark lending percentage
- discount rateInterest on Fed loans
rate cut · lending rate · APR · rate adjustment · floating rate
Ordinal for one hundred
- percentRate per hundred
- fractionPart divided by whole
- tickParasitic eight-legged pest
- pipFruit seed or dot
notch · gradation · uptick · downtick · movement · shift · change · fluctuation
Made of tiny particles
- exactPerfectly correct, no deviation
- fineAcceptable in quality
- measureUnit of quantity
- calibrateAdjust for accuracy
quantify · calculate · decimal place · rounding · significant figures · accuracy · specification · technical
spread
To distribute widely
mortgage · portfolio · equity · debt · capital markets · trading · liquidity · credit · securities · bonds
federal reserve
National monetary authority holdings
- central bankNational currency management institution
- monetary policyCentral bank economic controls
- prime rateBank's benchmark lending percentage
discount rate · rate cut · lending rate · APR · rate adjustment · floating rate
hundredth
Ordinal for one hundred
pip · notch · gradation · uptick · downtick · movement · shift · change · fluctuation · variation
granular
Made of tiny particles
calibrate · quantify · calculate · decimal place · rounding · significant figures · accuracy · specification · technical · standardized
- bondsbond, corporate bond, corporate bonds, government bond, municipal bond
- financial termswealth, asset, currency, balance sheet, audit
- percentages100%, 110%, 60 percent, 75 percent, 100 percent
- unitsunit, angstrom, yard, meter, mile
- pointspeak, peaks, tip, spike, spikes
- money symbolsdollar sign, pound sign, cent sign
basis pointpercentage point
Absolute rate difference unit
percent · whole point · percentage · round number · whole number
basis, point, bases, points, base, based, basing, baseless, basic