Burst Basket

DEFINITION of 'Burst Basket'

A burst basket refers to a particular type of stock transaction that involves the sale or purchase of a "basket of stocks". A basket is basically an entire portfolio of stocks (five to 50 stocks) from different sectors that are purchased in the aggregate by an equity specialist.

BREAKING DOWN 'Burst Basket'

This term is usually used in reference to a burst basket execution used in trading programs. The floor specialists would trade the component stocks in order to buy or sell the specific basket of stocks.

RELATED TERMS
  1. Basket Of Goods

    A relatively fixed set of consumer products and services valued ...
  2. Market Basket

    A subset of products or securities that is designed to mimic ...
  3. Income Basket

    Categories for which various sources of income are allocated ...
  4. Basket Trade

    An order to buy or sell a group of securities simultaneously. ...
  5. Basket Option

    A type of financial derivative where the underlying asset is ...
  6. Basket Of USD Shorts

    A forex trading strategy that involves the sale of the U.S. dollar ...
Related Articles
  1. Markets

    Purchasing Power Parity (PPP)

    Purchasing Power Parity (PPP) compares different countries' currencies through a market "basket of goods" approach. Two currencies are in PPP when a market basket of goods (taking into account ...
  2. Trading

    The Consumer Price Index

    Find out how this economic measure can help you make key financial decisions.
  3. ETFs & Mutual Funds

    3 Basket ETFs Your Broker Forgot to Mention

    Equity-based ETFs can be described as baskets of various stocks. Whether it is a broader market domestic fund, a sector ETF or an emerging markets equities play, the basket approach is used over ...
  4. ETFs & Mutual Funds

    What is an Index?

    An index is a statistical means of calculating a change in an economy or market.
  5. Markets

    What Does Price Level Mean?

    Price level is the average of all current prices for goods and services in an economy.
  6. Managing Wealth

    Why and How to Diversify Beyond Asset Class

    Diversification is a must for investment portfolios but it isn't enough. Investors have to have different exposures within asset classes.
  7. Trading

    Understanding Statistics

    Statistics provide the means to analyze data and then summarize it into a numerical form.
  8. Managing Wealth

    E-Marketing Specialist: Career Path & Qualifications

    Learn more about the duties and responsibilities performed by eMarketing specialists and common career paths this profession takes.
  9. Trading

    5 Popular Portfolio Types

    Learning how to build these portfolios will increase your investing confidence and give you financial control.
  10. Markets

    The Power Of Program Trades

    Learn how programs make up a significant portion of the volume traded each day.
RELATED FAQS
  1. How do I use a "basket" option?

    A basket option is an option with an underlying asset "basket" of securities, currencies or commodities. Basket options are ... Read Answer >>
  2. What's the difference between a Nasdaq market maker and a NYSE specialist?

    What's the main difference between a specialist and a market maker? Not much. Both the New York Stock Exchange (NYSE) specialist ... Read Answer >>
  3. What's the minimum dollar investment for crude oil?

  4. How does the Bureau of Labor Statistics determine the Consumer Price Index (CPI)?

    Changes in the average price level of more than 200 goods and services across the U.S. economy are used to determine the ... Read Answer >>
  5. When a floor broker asks a specialist, “How’s PDQ?” ...

    The correct answer is d. When the specialist gave the floor broker the quote of “59.20 to 35; 6 by 11,” the quote meant that ... Read Answer >>
  6. When a floor broker asks a specialist, “How’s PDQ?” ...

    The correct answer is d) When the specialist gave the floor broker the quote of “59.20 to 35; 6 by 11,”  the quote meant ... Read Answer >>
Hot Definitions
  1. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  2. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  3. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  4. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
  5. Enterprise Value (EV)

    A measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is ...
  6. Security

    A financial instrument that represents an ownership position in a publicly-traded corporation (stock), a creditor relationship ...
Trading Center