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What is the full form of BPS?

BPS: Basis Points

BPS Full Form

The full form of BPS is “Basis points”. BPS is also abbreviated as bp. It is also called as “bips”, “beep”, “beeps” or “points”. A basis point (BPS) represents the smallest unit of measurement for interest rates and other financial instruments. One basis point is equal to one-hundredth of 1 percent, or 0.01% or 0.0001 in decimal form. It takes 100 basis points to get 1 percentage point. Likewise, a fractional basis point such as 1.5 basis points is equivalent to 0.015% or 0.00015 in decimal form. Figures are commonly quoted in basis points in finance, especially in fixed income markets. For example: In the bond market, a basis point is used to refer to the yield that a bond pays to the investor.

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