Decimal floating point

Decimal floating-point (DFP) arithmetic refers to both a representation and operations on decimal floating-point numbers. Working directly with decimal (base-10) fractions can avoid the rounding errors that otherwise typically occur when converting between decimal fractions (common in human-entered data, such as measurements or financial information) and binary (base-2) fractions.

The advantage of decimal floating-point representation over decimal fixed-point and integer representation is that it supports a much wider range of values. For example, while a fixed-point representation that allocates 8 decimal digits and 2 decimal places can represent the numbers 123456.78, 8765.43, 123.00, and so on, a floating-point representation with 8 decimal digits could also represent 1.2345678, 1234567.8, 0.000012345678, 12345678000000000, and so on. This wider range can dramatically slow the accumulation of rounding errors during successive calculations; for example, the Kahan summation algorithm can be used in floating point to add many numbers with no asymptotic accumulation of rounding error.