Basis point value investopedia forex


Basis point value investopedia forex


A:A basis point is a unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument. In most cases, it refers to changes in interest rates and bond yields.For example, if the Federal Reserve Board raises interest rates by 25 basis points, it means that rates have risen by 0.25% percentage points.

If rates were at 2.50%, and the Fed raised them by 0.25%, or 25 basis points, the new interest rate would be 2.75%.In the bond market, a basis point is used to refer to the yield that a bond pays to the investor. It is common for bonds and loans to be quoted in basis point terms.




Basis point value investopedia forex

Basis point value investopedia forex

Basis point value investopedia forex



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