Bp refers to the basis point (bp), which is used to measure the interest rate changes of bonds and bills in finance. One basis point is equal to 1 percentage point 1%, that is, 0.0 1%, so 100 basis points is equal to 1%.

Basis (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. Calculation formula:

Spot price-futures price = basis point

Due to the cost of holding, the basis point is usually negative. In general, 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, enhanced basis point) 2, weakened basis point) 3, country basis point) 4 and premium basis point.

Reason: 1, storage cost of goods; 2. insurance; Step 3 pay interest

Extended data

Like percentage points, the basis point can only avoid the ambiguity between the relative and absolute discussions about interest rates by dealing with the absolute changes of interest rates.

The financial industry usually uses the basis point to express the interest rate change of financial instruments, or the difference (price difference) between two interest rates (including the yield of fixed-income securities).

Because some loans and bonds may usually be related to some indexes or underlying securities, they are usually called indexes (or declines). For example, a loan with an annual interest rate of 0.50% higher than LIBOR is said to be 50 basis points higher than LIBOR, which is usually expressed as "L+50bps" or "L+50" for short.

The word "basis point" originated from the "basis" of a transaction or the difference between two interest rates. Since the radix is usually very small, the reference is multiplied by10,000, so the "all points" motion of the radix is the basis. Contrary to the gap in the foreign exchange forward market.

The expense rate of investment funds is usually quoted on this basis.

Reference: Baidu Encyclopedia-Basic Points