Basis point (bp)
Definition · Level 0 · Market basics
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One hundredth of one percent: 0.01% = 0.0001. The unit for small moves, fees, spreads and yields.
Example
25 bp = 0.25%; 30 bp on $2M = $6,000.
Where Tradecraft teaches it
Level 0 · Market basics, in the lesson “Long, short & P&L”: Position direction, how profit and loss are measured, and the units traders quote them in.
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