Basic point refers to the center of a thing, that is, the root and foundation of a thing. Usually a base point is 0.0 1%. The value function of basis points is often applied to social practice, such as bond prices and the basis points of bank deposits and loans. , is calculated and exists as basic data. Just as bank deposits and loans have different basic points, they have different impacts on the people. The fewer basis points, the less interest users need to bear when borrowing.

Brief introduction of base point

Base point is often used in the financial field, and it is a unit used to express some variables such as bond price and fare interest rate. So the basis point means that there may be some differences between the spot price and the futures price of the same product, and there is a price difference. If you subtract the spot price from the forward price, then this figure is the basis point. In most cases, the basis point is negative because the spot price will be lower than the futures price. There are four types of basis points, mainly strengthening basis points, weakening basis points, national basis points and premium basis points. The function of the basis point is a centralized indicator, which can represent the foundation of a thing, so it is also very appropriate to use the basis point to reflect the change of deposit and loan interest rates in the financial market.