bps definition finance | BTCC Knowledge

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A Basis Point (BPS), also known as 'Bips', is a unit of measurement used in finance to denote a change in percentage, equal to 1/100th of 1% or 0.01%. It is commonly used in financial markets, especially in bond trading and interest rate calculations, to represent small percentage changes accurately. The term 'Basis Point' allows for precise communication of changes in financial instruments' yields, rates, or prices.

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