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Portfolio Trade
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The purchase or sale of a basket of stocks. By New York Stock Exchange definition, a portfolio trade (or program trade) includes more than 15 different stocks with a total value of $1,000,000 or more entered as a coordinated transaction. Portfolio trades may be undertaken to increase or reduce market exposure in a portfolio or as one side of an EFP or index arbitrage trade. Also called Basket Trade. See Exchange of Futures for Physicals (EFP), Index Arbitrage, Portfolio Insurance, Program Trading.
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