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Originally, trading an entire portfolio in a single coordinated transaction, i.e., 'portfolio trading.' Program trading has come to encompass index options and futures 'arbitrage trading' designed to take advantage of temporary pricing discrepancies between index futures and/or option contracts and the underlying stocks, and 'portfolio insurance.' The more specific alternative terms 'portfolio trading' (see Basket Trade), 'index arbitrage' and 'portfolio insurance' are more descriptive and leave the overused term 'program trading' to politicians and polemicists. See Portfolio Trade, Index Arbitrage, Portfolio Insurance. See also SuperDOT.
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