One one-hundredth (1/100) of a percentage unit. For example, 50 basis points equals one half of one percent. Banks quote variable loan rates in terms of an index plus a margin and the margin is often described in basis points, such as LIBOR plus 400 basis points (or, as the experts say, "beeps").
Barry Goldsmith
| APA | Barry Goldsmith. (2010). Basis point ("bp"). Retrieved September 25, 2026, from http://smartdefine.org/basis_point_(%22bp%22)/definitions/1148458 |
| Chicago | Barry Goldsmith. 2010. "Basis point ("bp")" http://smartdefine.org/basis_point_(%22bp%22)/definitions/1148458 (accessed September 25, 2026). |
| Harvard | Barry Goldsmith 2010, Basis point ("bp"), Smart Define, viewed 25 September, 2026, <http://smartdefine.org/basis_point_(%22bp%22)/definitions/1148458>. |
| MLA | Barry Goldsmith. "Basis point ("bp")" 21 October 2010. Web. 25 September 2026. <http://smartdefine.org/basis_point_(%22bp%22)/definitions/1148458> |