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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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.


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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


A preassembled group of securities. Baskets allow individual investors to acquire a group of securities with a single trade while paying one commission.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.


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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
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POTTERY, basketware, olive wood bowls, coral and shell jewellery.
The island's local crafts include basketware and wood carvings, which you'll be able to in find in many of the villages.
The permit scheme, which was introduced last year at the same time as a pounds 45 charge for 'A' boards, also covers floral and basketware displays along with pot plants and ornate charity collection boxes.
These include Bob Kelman and Louise Murdoch, from Ayrshire in Scotland, who are selling water features and basketware for the garden.
GET your home in tip-top condition for Christmas with the help of these reputable North East companies: The Cane Factory Ltd has supplied cane furniture and basketware, as well as complementary lighting, for more than 35 years, along with interesting accessories from its factories in Asia.