What is the definition of a base point and what are its uses? The source in the first comment is a base point that shows a unit of interest rate change, where one basis point means 1 per 100 of 1% ؜ 0.0001 or 0.01% ؜ or simplifying 100 basis points equal to 1% ؜ (Bp / bps / bips) used to explain the increase or decrease in interest rates or ratios generally without ambiguity. For example, if the company's profit margin is 10% and the company announced that it will increase this margin by 10%, it may come to mind that the margin will become 11% ؜ It may come to mind that the margin will be 20% ؜ and thus to remove confusion it is more accurate to say: the company's profit margin will increase by 100 basis points and therefore It is easy for the listener to explain that the new margin will be 11% ؜ # basis points