Basket - Equity Derivatives Provision: Difference between revisions

Basket - Equity Derivatives Provision (view source)

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	{{eqderivanat\|1.15}}		{{eqderivanat\|1.15}}
	Sort of like a mini-index, only static (but modifiable by agreement). In the context of [[delta-one]] [[equity derivatives]], there’s little difference between a {{eqderivprov\|Basket}} and a collection of single {{eqderivprov\|Share Swap Transaction}}s on the individual {{eqderivprov\|Issuer}}s comprising the basket. You might ask why bother even having them, but if you wanted to trade a fixed block, and keep a single UTI, it might make sense — for trading a modified version of a public index, for example.		Sort of like a mini-index, only static (but modifiable by agreement). In the context of [[delta-one]] [[equity derivatives]], there’s little difference between a {{eqderivprov\|Basket}} and a collection of single {{eqderivprov\|Share Swap Transaction}}s on the individual {{eqderivprov\|Issuer}}s comprising the basket. You might ask why bother even having them, but if you wanted to trade a fixed block, and keep a single [[UTI]], it might make sense — for trading a modified version of a public index, for example.