The basic point means: the center, the focus, the foundation and foundation of the development of things.

What the basic point means can be explained in detail as follows:

The word base point may have different meanings in different contexts. According to the usual understanding, the following two explanations can be given:

1, the base point or starting point, indicates the most basic and important point or stage in a thing or process. It can be the starting point of a problem, the basis of a plan or the starting point of a development process.

2. Datum points or marked points refer to points or standards used for reference or comparison. Usually used to evaluate, measure or compare the change or development of things or situations.

One basis point is equal to one percent of 1 percentage point, that is, 0.0 percent1,so 100 basis point is equal to one percent.

Basis points are usually used to calculate changes in interest rates, stock indexes and returns on fixed-income securities. Bonds and loans are usually quoted at basis points. For example, it can be said that the interest rate offered by banks is 50 basis points higher than LIBOR. Bonds with yields rising from 5% to 5.5% are said to have increased by 50 basis points, or interest rates have increased by 1% and 100 basis points.

Financial concept

Basis point, the difference between the spot price of the same commodity and the futures contract price. That is, the gap between the current price and the futures price. The calculation formula, spot price-futures price = basis point is usually negative, because the holding cost needs to be paid. The spot price is actually lower than the nearby futures price. As the delivery deadline approaches, the holding cost decreases, and the difference between spot and futures prices narrows.

The basis points are: 1, and the strengthening basis points. 2. Weakening foundation is weakened. 3. National base point. 4. Premium basis point premium basis. Reason: 1, storage cost of goods. 2. Insurance. 3. Pay interest.