Basis: Difference between revisions

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

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).