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 ?
In fact, they are receiving basketful of dates for free.
Maihaja has failed to get any modicum of fraud to crucify him from the basketful of allegations they heaped on his person and office.
Send pictures to Flashback, Daily Post, PO Box 202, Vale Road, Llandudno Junction, Conwy, LL31 9ZD or e-mail featureswales@dailypost.co.uk | This little girl is pictured with a whole basketful of Easter bunnies, pictured | Beaumaris primary school pupils in April 1995 revive the Anglesey Easter custom of clapping for eggs.
She carries a basketful of gifts that she gives out on her travels including her famous painted dolls and so it is that in Russia and eastern Europe Babushka is the one who leaves presents for children at Christmas.
Many local businesses set up stalls to sell their goodies and promote their services, including A Basketful of Love; Kandy Prints; Started With a Stitch; Everton in the Community; Sure-Start; The Doh-Hut; and Sarah Darcey's Delight.
Now ICUEaE[sup.3]m not one for spending my entire holiday hidden away in a resort, lounging by the pool with yummy cocktails and a basketful of fries.
On these pages, you'll find a basketful of ideas to put to use in your communities, and we hope you'll pass those ideas and successes on to others.
THERE'S a basketful of bargains at the Co-op, from meal deals to treats.
Out of a basketful of aggressive options, DEBKAfile's military and intelligence experts pick the four most likely methods the Americans may have applied to thwart the latest North missile launch: 1.
Now I'm not one for spending my entire holiday hidden away in a resort, lounging by the pool with yummy cocktails and a basketful of fries.
Moreover Grimes ignores the plethora of studies and points people to one Finnish study (Klemetti, et al., "Birth Outcomes...," Human Reproduction, 8/29/12) that he says is a "favorite citation of abortion opponents." In fact it is but one of a basketful of studies pro-lifers cite, and nowhere near as weak as Grimes implies.
In her left hand is a basketful of fresh produce, in her right, a plastic bag bearing live fish.