Basket Trading

The term basket trading refers to buying and selling bundles made up of multiple different assets (such as securities or currencies) rather than selling securities individually.

Basket trading is widely used in forex trading. By distributing an investment between multiple currency pairs using currency baskets, traders can spread risk and benefit from rate climbs across multiple currencies.

Investment vehicles based on index which track multiple stocks, commodities or other assets are another form of basket trading instrument. Examples of index-based investment vehicles include exchange-traded funds (ETFs) and index-based contracts for difference (CFDs).

Some brokers offer basket orders which allow investors to buy collections of different stocks or other securities which have been bundled into “baskets.”

More on this topic:
Swiss stock broker comparison

About moneyland.ch

moneyland.ch is Switzerland’s independent online comparison service covering banking, insurance and telecom. More than 80 unbiased comparison tools and calculators are available on moneyland.ch, along with useful financial guides and timely news. The comprehensive comparison tools help you to find the right insurance policies, bank accounts, credit and prepaid cards, loans, mortgages, trading accounts and telecom products for your needs.