Basket trading is a versatile and efficient trading strategy that allows for diversified investment across multiple asset types. It’s particularly popular among investment funds and individual investors looking for a balanced and risk-mitigated approach to trading.
How can retail investors benefit from basket trading?
Most retail brokers offer basket trading to clients, enabling retail investors to benefit from this strategy. Retail investors can use basket orders to execute multiple trades simultaneously, making it more convenient than carrying out individual trades. One of the best ways to trade with minimal risk is to diversify the investment portfolio.
What is a basket trading order?
In basket trading, the order type is unique. It’s not just a single stock or commodity you’re dealing with; it’s a collection of different assets. This could range from a mix of stocks from various sectors to a combination of commodities and currency pairs.
