Basket (finance)

Summary

In finance, a basket is a weighted group (a linear combination) of several financial instruments. The purpose could be for example simultaneous buying or selling, for example during program trading.

Certain specific specialized "baskets":

  • A stock market index is a basket for all the securities in a particular exchange.
  • A market basket is a basket for all the securities on a particular market.
  • A combination of individual assets, used as an underlying of a basket option.

See also edit