Basket trades

Basket trades

Related: Program 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.
References in periodicals archive ?
So despite his firm's ETF products averaging about $67,000 per product a day, the underlying basket trades $23 billion per day.
Smart Basket offers totally secure basket trades. A project that provides new opportunities for BNP Paribas customers eligible for transparency and greater reliability.
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.
"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.