Basket Order
A single instruction that submits orders in several securities at once, in preset quantities.
How it is identified
Test: one submission generates multiple child orders across different securities, each executing independently
Unit
qualitative
In depth
A basket is a convenience for entering many positions simultaneously — replicating an index, executing a model portfolio, or putting on a spread across related stocks. Each child order still executes independently, so partial completion of the basket is normal and can leave an unintended net exposure. That is the risk people underestimate: a hedged pair becomes a directional bet if only one leg fills. Baskets do not receive any special matching treatment from the exchange; they are simply many ordinary orders sent together.
Worked example
A basket buys ten stocks worth ₹50,000 each, a ₹5,00,000 portfolio. If two of the ten are illiquid and go unfilled, the investor holds ₹4,00,000 across eight names and is overweight each by 25% relative to the intended plan.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Basket Order” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.