Basket

(redirected from Baskets)
Also found in: Dictionary, Thesaurus, Medical, Idioms, Encyclopedia.
Related to Baskets: Michaels, Country Baskets, Walmart

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 classic literature ?
Dat ar Tom's gwine to make a powerful deal o' trouble; kept a puttin' into Lucy's basket.
asked Sara Ray seriously, wreathing the handle of her basket with creeping spruce.
To divert my mind, I took up the newspaper which had covered the little basket of refreshments, and which now lay at the bottom of the coach, blushing with a deep-red stain and emitting a potent spirituous fume from the contents of the broken bottle of Kalydor.
The sun got round behind the wood, and it was quite late in the afternoon; but still the cat sat upon the basket.
I remember that I laid down the basket full of diamonds, wishing to be rid of its weight, but on second thoughts took it up again.
Gervais, followed by Grimaud, who carried the basket, ignorant of where he was going but in the passive obedience which Athos had taught him not even thinking of asking.
At a word from Zobeida, Sadie and Amina took the basket from the porter, who was glad enough to be relieved from its weight; and when it was emptied, paid him handsomely for its use.
Only Beaudelet remained behind, tinkering at his boat, and Mariequita walked away with her basket of shrimps, casting a look of childish ill humor and reproach at Robert from the corner of her eye.
I would not disappoint the little angel for all the world: and if you want me at the card-table now, I am resolved to finish the basket after supper.
So she set down her basket and began fumbling in it for one of the precious powders she had obtained.
The youngest of the two had got into a waste-paper basket.
The baby in the cradle woke up and cried; the boy in the clothes-basket fell over on his back with the basket upon him, and was seen no more; the mother wept louder yet and rocked faster; but Kit, insensible to all the din and tumult, remained in a state of utter stupefaction.