In the Basket Trading System, an investor can buy and sell all 30 scrips of SENSEX in one go in the proportion of their respective weights in the BSE SENSEX. The investors need not to calculate the quantity of BSE SENSEX scrips to be bought or sold for creating sensex linked portfolios. This function is performed by the online system.
To participate in this system, the member brokers need to indicate number of sensex basket to be bought or sold, where the value of one sensex basket is arrived by the system by multiplying Rs.50 to prevailing system.
Example: It the BSE SENSEX is 19000, the value of one basket of sensex would be: 19000
Note: The investors can alter the weights of securities in such profiled baskets and enter their own weights. The investors can also select less than 100% weightage to reduce the value of the basket as per their own requirements.
Comments
Post a Comment