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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 ?
chosen from a basketful of unshaped, jumbled colors of spun
The anti-Semite's art is gathering up Jewish bad apples and presenting the basketful as representative of the tree that produced them.
In the last few years, a basketful of books have come out promoting the Earl of Oxford, the Countess of Pembroke, Sir Henry Neville, Sir Francis Bacon, or Christopher Marlowe as the true author of Shakespeare's works.
If one rotten apple can do that, small wonder that a whole basketful can and still does threaten the entire banking system.
In Seward, fresh off a boat trip on Resurrection Bay, we head to Ray's Waterfront for a bracing cup of seafood chowder that is rich and smoky, full of potatoes, clams, salmon and halibut served with a basketful of cracker choices.
AFTER the stunner came out with a basketful of goodies, she was suddenly wearing a black sports bra.
It all began when he was 13 and life handed him a basketful of proverbial lemons.
New CEO Charles Anderson publicly announced the results of a forensic audit, airing a basketful of dirty laundry involving prior leaders.
Wander through 10 acres of purple fields and cut a basketful stems cost just $3.
A butcher's boy, on his bike with a basketful of meat, stopped to feed the nice "doggie" he saw patrolling on the pavement.