What is Basket Trading?
Basket trading is the trading of many numbers of stocks, usually more than 10, with a single order entry. Basket trading is performed by sophisticated traders, usually institutional traders, who trade in large quantities. Apart from stocks, basket trading can be also performed for currencies, futures and other similar financial instruments. The trading systems of some firms, like NobleTrading, allow trades to even trade different products (stocks, options and futures) in a single basket.
Advantages of basket trading are
Advantages of basket trading are
- Ability to trade in individual stocks or basket.
- Time savings.
- Arrangement of stocks in different criteria according to price, industry/sector, growth rate, market capitalization, profit goals etc.
- Automatic generation of criteria.
- Easy monitoring of the performance of a chosen number of stocks.
- Control over your trading portfolio.
- Ability to modify the basket at any time.
- Easiness in generating reports for a given basket.
- Ability to trade market listed and over-the-counter stocks.
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posted by NobleTrading at
4:14 AM
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