what does bps mean
DEFINITION of 'Basis Point (BPS)'. A basis point, or bp, is a common unit of measure for interest rates and other percentages in finance.One basis point is equal to 1/100th of 1%, or 0.01% (0.0001), and is used to denote the percentage change in a financial instrument.The relationship between percentage changes and basis points can be summarized as follows: 1% change = 100 basis points, and 0.01% = 1 basis point.EFINITION of 'Basis Point (BPS)'. A basis point, or bp, is a common unit of measure for interest rates and other percentages in finance.