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Basket trade |
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Basket tradeA contract or other instrument for the purchase or sale of a group of shares or currencies, all of which are traded together.Sometimes used to refer to a UK share trade using every share in the FTSE 100.Similar MatchesBasketBasketSee currency basket. Basket optionsBasket optionsPackages that involve the exchange of more than two currencies against a base currency at expiration. The basket option buyer purchases the right, but not the obligation, to receive designated currencies in exchange for a base currency, either at the prevailing foreign exchange market rate or at a prearranged rate of exchange. Multinational corporations with multicurrency cash flows frequently use basket options because it is generally cheaper to buy an option on a basket of currencies than to buy individual options on each of the currencies that make up the basket. Basket tradesBasket tradesRelated: Program trades. Currency basketCurrency basketA group of two or more currencies that may be used as a unit of account, or to which another currency may be pegged. Currency basketCurrency basketThe value of a portfolio of specific amounts of individual currencies, used as the basis for setting the market value of another currency. It is also referred to as a currency cocktail. Further Suggestionsbasket warrantIncome baskets Basket |
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