Basket trades

Basket Trade

1. A single order or trade in 15 or more securities, especially in large amounts. Basket trades can be open orders in which the computer is instructed to wait until a certain price prevails before buying or selling the large quantity of securities. This is a service offered exclusively to institutional investors and high net-worth individuals.

2. See: Program Trading.

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References in periodicals archive

Historically, basket trades have been passed from the buy-side to sell-side program trading desks, which then split orders across multiple desks depending on the region or country being traded.

Bloomberg Tradebook launches global portfolio trading algo

"Most traders have a choice of trading vehicles to implement a given trade, from ETFs to basket trades, from stock index futures contracts to OTC equity swaps," says Laurie Berke, a New York-based partner at TABB and author of the report.

Optimising ETFs: Is there an easier way?

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