Basket

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Basket

Applies to derivative products. Group of stocks that is formed with the intention of either being bought or sold all at once, usually to perform index arbitrage or a hedging program.

Basket

1. A group of securities often, but not always, derivatives, bought and sold as a single unit. Institutional investors often purchase baskets in order to pay only a single commission on an exceptionally large transaction. A basket is also useful in an index arbitrage transaction.

2. See: Currency basket.

basket

A preassembled group of securities. Baskets allow individual investors to acquire a group of securities with a single trade while paying one commission.

Basket.

A basket is a group of securities that have been put together for a specific investment purpose and are traded as a unit.

Authorized ETF participants accumulate baskets that include all of the securities tracked by a specific index. The baskets then become creation units for an ETF that tracks that index.

Basket also refers to a group of 15 or more securities with a combined value of $1 million that institutional investors and arbitrageurs assemble to use in program trading. The program trading is driven by sophisticated computer software that may automatically trigger trading when prices, or spreads between prices, hit predetermined levels.

Since baskets represent large values, basket trading can cause abrupt price changes in a stock or group of stocks included in a basket and may even have a dramatic effect on the overall market.

References in periodicals archive ?
Sure, those who think that they're going to be able to succeed by making massive numbers of undifferentiated whatevers are going to find themselves in the aforementioned handbasket.
It seems that the average education critic believes that, even as public education goes to hell in a handbasket, the great little school down the block remains a lucky anomaly.
In a calm, unhurried atmosphere, TSA rules and carriers' policies normally mesh, albeit with some clashing of gears, but if you're in a congested airport with long lines, things can quickly go to hell in a handbasket.
e], and who'll intercede for us itinerants while the world goes to hell in a handbasket (floats like a discarded dinner-dress down to the aqueduct)?
The country is headed to hell in a handbasket from so many directions one can barely keep track.
Profits grew, and Hershey traded his handbasket for a pushcart.
They went to Hell in a handbasket and there Was the ending for a xxxxxx xxxxxx.
We didn't anticipate the economy going to hell in a handbasket," he said.
The onus is on us that it's not just another book showing that we're going to hell in a handbasket.
Our country is going to go down the tubes in a handbasket shortly," says Mike Quinn, area supervisor of the International Union of Operating Engineers Local 793, in his blunt assessment of the provincial and national situation.
Vermont can act as a model in another way as well, says Gerstmann: "The rest of the country will be able to see that Vermont is not going to hell in a handbasket.
Most reasonable business people would agree that the world is going to hell in a handbasket because of their actions.