Forex Glossary

Get the grips with forex jargon in your trading journey

Basis point

Jul 14, 2020 14:15

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A Basis point is a unit of measurement which is equal to one hundredth of a percent. When interest rates are calculated it is necessary to remove all ambiguity: in this case the unit becomes the base point. For example, an increase of the base rate from 7% to 7.2% would imply a 20 base point change.

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