Imagine slicing each percentage point into 100 tiny pieces. That's exactly what a basis point is - one of those tiny slices.

In the world of finance, basis points are like tiny steps that financial things like interest rates, currency rates, and bond yields take. When we say an interest rate went up by 25 basis points, it means it jumped by a quarter of a percent (0.25%).

Think of basis points as the financial world's version of millimeters. They're a handy way to measure small changes that can add up to big differences over time. So, next time you hear about a central bank raising interest rates by 10 basis points, you'll know it's a tiny nudge upward, not a giant leap.

At Double we calculate slippage in basis points.