- This topic has 2 replies, 2 voices, and was last updated 1 year ago by .
Viewing 3 posts - 1 through 3 (of 3 total)
Viewing 3 posts - 1 through 3 (of 3 total)
- You must be logged in to reply to this topic.
PQ Awards Nominations
Please help us to win one of the PQ Magazine awards and send in the voting form >>
You can nominate us in any or all of the following categories: Online College of the Year, Study Resource of the Year, Private Sector Lecturer of the Year, and Accountancy Personality of the Year.
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Difference between basis points and tick
In the revision kit they have in some some questions they have used basis points for example “less 30 basis points”
I have gone through your lecture videos and come across tick i understood that
IS tick and basis points the same or different?
I do understand the concept of basis risk
just the difference and whether the implementation is the same or not
We use the word basis point when we are referring to a change of 0.01% in the rate of interest, and we use the term tick when we are referring to a change of 0.01 in the futures price.
Questions sometimes give you the tick value (i.e, the gain or loss due to a 1 tick change in the futures price) but as I explain in my lectures you never actually need to answer in terms of ticks (and I never do 🙂 ).