From The Jolly Contrarian
Jump to navigation Jump to search
Towards more picturesque speech

George Orwell on plain English | SEC guidance on plain English Plain English Anatomy Noun | Verb | Adjective | Adverb | Preposition | Conjunction | Latin | Germany | Flannel | Legal triplicate | Nominalisation | Murder your darlings

Index: Click to expand:

Get in touch
Comments? Questions? Suggestions? Requests? Insults? We’d love to hear from you.
Sign up for our newsletter

All-purpose financial services jargon which, if uttered in relation to a point, means one-hundredth of a percentage point, and when comparing two things, means the unhedged difference between them. Hence “basis risk”.

Basis point

One hundredth of one percent of a given notional or principal amount. More accurate than “per cent” which suffers from a kind of relativistic ambiguity (do you mean a percentage of notional, or of a change in notional etc).