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BasketSee currency basket.BasketApplies 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 Similar MatchesBasket 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. 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. Income basketsIncome basketsCategory to which certain income is allocated. Losses in one basket may not be used to offset gains in another basket. Specified in U.S. tax code. Basket tradeBasket 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. 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. Further Suggestionsbasket warrantBasket trades |
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