Basket Trade

DefinitionBasket trade is a term common in securities trading as it involves the simultaneous trading of a group of securities known to be in a “basket.” It is basically used to buy stocks. This type of security trading is beneficial for large investors who seek to hold large amounts of securities at the same time. To qualify as a “basket of trade”, the expected basket of trade must have at least 15 securities in it and they are tracked against indexes to assess returns.What is Basket Trading?Basket trading is a process whereby a trader trades a selection of assets, securities,…
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