Whilst a Fixed Point representation keeps the ``point'' (the location considered to be $i = 0$ in \eqref{fixedpointZ}) at the same position in a string of bits, Floating point representations can be thought of as scientific notation; an ``exponent'' and fixed point value are encoded, with multiplication by the exponent moving the position of the point.


The use of floating point arithmetic in computer systems was pioneered by Knuth, Goldberg{goldbern1967twentyseven}, Dekker, and others\cite{HFP}, but modern systems are largely compatable with the IEEE-754 standard pioneered by William Kahan in 1985 \cite{ieee754std1985} and revised (also with contributions from Kahan) in 2008\cite{ieee754std2008}.

A floating point number $x$ is commonly represented by a tuple of values $(s, e, m)$ in base $B$ as\cite{HFP, ieee2008-754}: $x = (-1)^{s} \times m \times B^{e}$

Where $s$ is the sign and may be zero or one, $m$ is commonly called the ``mantissa'' and $e$ is the exponent. Whilst $e$ is an integer in some range $\pm e_max$, the mantissa $m$ is a fixed point value in the range $0 < m < B$. The choice of base $B = 2$ in the original IEEE-754 standard matches the nature of modern hardware. It has also been found that this base in general gives the smallest rounding errors\cite{HFP}. 

%Early computers had in fact used a variety of representations including $B=3$ or even $B=7$\cite{goldman1991whatevery}, and the revised IEEE-754 standard specifies a decimal representation $B = 10$ intended for use in financial applications\cite{ieee754std2008}\footnote{Eg: The smallest valid unit of currency \$0.01 could not be represented exactly in base 2}. From now on we will restrict ourselves to considering base 2 floats.

The IEEE-754 encoding of $s$, $e$ and $m$ requires a fixed number of continuous bits dedicated to each value. Originally two encodings were defined: binary32 and binary64. $s$ is always encoded in a single leading bit, whilst (8,23) and (11,53) bits are used for the (exponent, mantissa) encodings respectively. 

The encoding of $m$ in the IEEE-754 standard is not exactly equivelant to a fixed point value. By assuming an implicit leading bit (ie: restricting $1 \leq m < 2$) except for when $e = 0$, floating point values are gauranteed to have a unique representations; these representations are said to be ``normalised''. When $e = 0$ the leading bit is not implied; these representations are called ``denormals'' because multiple representations may map to the same real value. The idea of using an implicit bit appears to have been considered by Goldberg as early as 1967\cite{goldbern1967twentyseven}, and it leads to an increase of precision near the origin.

