Basis Point

This Issue in United States

Concept of Basis Point in Futures Trading

In this context of financial law, the following is a definition of Basis Point: The measurement of a change in the yield of a debt security. One basis point equals 1/100 of one percent.

Basis Point

Concept of Basis Point in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): One basis point is one hundredth of one percent, or 0.01%.

Resources

See Also

• Derivatives Contract