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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.


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.


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


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 ?
The WBCA National Convention is one of the most important events in the sport of women's basketball and is held each year in conjunction with the NCAA Women's Final Four
But if Vetter's players are using him to land college scholarships, he certainly makes out well on his end of the deal, including, a basketball camp, and a contract with Nike as a consultant and public speaker.
The Armory space will also pay homage to basketball's heritage and specifically the 20th Anniversary of the 1992 USA Basketball Dream Team, showcasing historic footwear and apparel memorabilia.
The Southern California Interscholastic Basketball Coaches Association is holding its annual summer classic, with the finals scheduled for Sunday at Arroyo of El Monte (girls) and Northwood of Irvine (boys).
One of the reasons is that Calhoun thinks he is not as committed to basketball as Calhoun would like him to be.
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The Women's Basketball Coaches Association (WBCA) and Minute Maid/Coca-Cola are proud to jointly sponsor "The Art of Women's Basketball" art print competition.
Here in America's heartland, where basketball is less a simple game than way of life, the Final Four is once again setting up the hardwood in downtown Indianapolis.
What I loved most about basketball was the friendships I made on the high school team.
Electronic Arts (Nasdaq:ERTS) announced today that Adam Morrison, who led the NCAA[R] in Division I men's basketball scoring last year and was the third overall draft pick of the Charlotte Bobcats in the NBA, has been selected the new face of NCAA [R] March Madness [R] 07, scheduled for release January 16, 2007 under the EA SPORTS[TM] brand.