HomeDefinitionsCompareDebt Basket tradesThe financial definition for Basket trades:Related: Program trades. Similar MatchesBasketBasketApplies 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 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. Further SuggestionsIncome basketsClick to compare definitions of Basket trades Click to view definitions beginning ba |