Basket trading: expressing one view across many pairs

Instead of one USD bet, a basket spreads it across several pairs — and the same goes for a view on any currency. Baskets smooth pair-specific noise but multiply execution and correlation management.

How do you build a basket?

• how you pick which pairs carry the view
• how you size each leg so the total risk is right
• when you trim or rebuild the basket

The correlation guide is essential reading for basket sizing.