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Trends & Analysis
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Gold price tests a multi-month low on a stronger USD

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Micron shares slide despite upbeat results

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Will gold hold or fold?

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Costco shares slide despite earnings beat

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Crude oil becomes volatile as Russia relaxes ban

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Where could the bulls save the S&P 500?

Trends & Analysis
News

Gold price tests a multi-month low on a stronger USD

News

Micron shares slide despite upbeat results

News

Will gold hold or fold?

News

Costco shares slide despite earnings beat

News

Crude oil becomes volatile as Russia relaxes ban

News

Where could the bulls save the S&P 500?


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Basket definition

In trading and investment, a basket refers to a collection of securities, such as stocks, bonds, commodities, or currencies, that are grouped together and traded as a single unit. The securities chosen in the basket usually share certain characteristics, such as them belonging to the same sector, asset class, or originating from the same location.

Benefits of investing in baskets

Baskets are often used in index-based investing. The main benefit of investing in a group of securities as one unit is convenience. Investors can easily replicate the performance of a particular sector or market by investing in a basket of securities that represent the sector or market.
Baskets of securities can also be used for diversification purposes. Investors can spread their capital across a variety of securities instead of investing in one individual security to lower investment risk.

An example of a basket investing

An investor who wishes to invest in the overall development of a sector or industry can invest in a basket of securities that share this characteristic.
For example, an investor wishes to track the performance of the tech industry and invest in it. However, they do not want to invest in securities separately because of the hassle of monitoring markets and the high costs of placing multiple transactions. They can invest in a basket of tech stocks instead.
The performance of this basket of tech stocks can be measured against a benchmark index, such as the NASDAQ or the FTSE 100. The trader can then determine how well the basket does over time.

Start trading with ADSS

ADSS offers a range of global markets for traders, with CFD opportunities in indices, commodities, forex, equities and more. We also feature tutorials, how-to guides, and weekly webinars to help you navigate the financial markets and find better trading opportunities. You can start trading and investing online by opening a live trading or demo trading account.

 

See all glossary trading terms


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Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.