Basis point

A basic point is something 1/100 of a percentage. In other words it’s hundredth part of a percentage therefore 1%=100 basic points. Difference between 4.25% and 5% is equal to 75 basic points
Simply 1%=100 basic points that is smaller unit for percentage and we can put it another way: 

1 basic point = 0.01%

Basic points are used in quotation of securities, bond or share because they are quoted in points and indexes