What are Basis Points?

Basis Points Definition

Basis points measure changes in interest rates and other financial percentages. 1% change = 100 basis points, and 0.01% = 1 basis point. Convert basis points into a percentage by multiplying the basis points by 0.0001. For example, 275 basis equals 0.0275 (275 x 0.0001) or 2.75% (0.0275 x 100).

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