BP, also known as BP, is an index unit for calculating the rate of return in financial investment. Its English name is Base Point or Basic Points, and its Chinese name is BP. A BP is 0.0 1%, which is one in ten thousand.
The basic principle of the basis point (BP) calculation formula is (today's price-yesterday's price) ÷ yesterday's price × 10000, but many weighting parameters are added in the actual calculation.
Extended data:
Techniques for avoiding exchange rate risk;
1. Multi-currency investment: according to the RMB trade structure, a series of optimized currency basket combinations are constructed, which are scattered in the US dollar system (US dollar, Hong Kong dollar, etc.). ), European system (euro, pound, etc. ), commodity system (Canadian dollar, Australian dollar, etc. ) and the Asian system (Singapore dollar, Thai baht, etc. ), can largely avoid the risk of gradual appreciation. In fact, many QDII funds also adopt multi-currency hedging investment strategies.
2. Use compound interest effect to offset the influence of exchange rate: In foreign exchange transactions, the difference of income affected by exchange rate is very significant and tends to decline during the holding period within one year. If the holding period exceeds one year, the income may exceed the exchange rate difference. The longer the holding period, the higher the yield and the greater the actual amount.
3. Using financial derivatives, such as trading on futures exchanges, is a good way to avoid exchange rate risks. For investors who hold foreign currency assets, they can lock the exchange rate through foreign currency forward transactions, thus avoiding the exchange risk caused by large exchange rate fluctuations.
4. The foreign exchange risk is closely related to foreign currency. The foreign exchange risk will be different with the currency of receipt and payment in the transaction. In principle, we should strive for hard currency to collect foreign exchange and soft currency to pay foreign exchange.
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