Buying or selling all 30 scrips of sensex in proportion of their current weights in the sensex in one go is called _____________.

Basket trading

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Arbitrage

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Badla

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Margin Trading

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Solution

The correct option is A Basket trading
A basket trade is an order to buy or sell a group of securities simultaneously. Basket trading is essential for institutional investors and investment funds who wish to hold a large number of securities in certain proportions.
A basket is a group of several securities created for the purpose of simultaneous buying or selling. Baskets are frequently used for program trading. Certain specific products can be seen as specialized baskets.

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