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Basket Trading

Basket trading lets you create a list of up to 50 stocks, called a basket, that you can save, trade, manage and track as one entity. Use the baskets you create to invest in and track stocks grouped by investment style, market sector, life event, or any classification you choose.

Basket Basics

Basket Transactions

Watch Baskets

Tracking Gain and Loss

Selling Specific Shares

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BASKET BASICS

What are the advantages of basket trading?

The advantages of basket trading include:

What types of orders can I place?

You can place market orders on Listed and Over-the-Counter (OTC) equities.

When can I place a basket trading order?

Basket trading orders are eligible for execution only during standard market hours (9:30 a.m. - 4:00 p.m. ET). However, you can create and save baskets during non-market hours. Basket trading is not available in Fidelity's premarket and after hours ECN sessions.

What are the fees, minimums and commissions when trading in a basket?

There are no additional fees for basket trading. There is a $2,000 minimum to purchase a basket, but the value of the basket does not need to be maintained at $2,000 (if the value of the stocks fall, for example) and there is no minimum for subsequent orders. Commissions are charged per security according to the commission schedule applicable to the account.

BASKET TRANSACTIONS

How do I allocate my basket?

Allocation weightings for baskets can be established using one of the following methods:

If you do not select an allocation method, the default allocation is dollar weighting.

Can I trade individual securities within the basket, or do I have to trade the basket as a whole?

After you purchase your basket, you can buy and sell individual securities within the basket at any time.

How do I add stocks to a new basket?

On the Create a New Basket page, you can add from 2 to 50 symbols to your basket. You can automatically add symbols to your basket by selecting a saved watch list from the drop-down list and clicking Get Basket Symbols.

How do I purchase a watch basket?

On the Basket Summary page, click the Purchase link for the watch basket you want to purchase.

How do I change or perform transactions on a purchased basket?

On the Basket Summary page, click the Trade link or a basket name to display the Purchased Basket page. From this page, you can

How do I cancel a basket?

All orders in a basket are market orders. You can attempt to cancel an individual order from the Order Details page if an order has not executed, and re-enter a new order in basket trading. However, use caution when entering the new order, as most market orders receive an execution. Cancel and Replace functionality is not available on basket trades.

Can I cancel and replace a basket trading order?

No, the Cancel and Replace function is not available on basket trades. If an individual order has not executed, you can attempt to place a straight Cancel of that order from the Order Details page, and re-enter a new order in basket trading. Use caution when entering orders, as basket trades are market orders and most market orders receive an execution.

What if an order in my basket can't execute?

Although all orders on buy-side and sell-side transactions are market orders, certain orders may not execute. For example, a security that you are trading would not be part of your executed basket if that security halted trading at the time of order entry and did not resume trading through market close.

The weightings on executed positions do not adjust to account for the unexecuted position(s). For example. say you have entered a share-weighted order to purchase an 11-security basket at 100 shares for each position. If one of the securities did not execute, the 100 shares that were assigned to that position will not distribute across the 10 positions that did execute.

You can attempt to buy/sell a security that did not execute in the basket at another time. However, unexecuted market orders do not automatically carry over to the next trading session; you must reenter them.

What about record keeping? How do I know what position is part of a basket?

The Basket Summary page provides an overview of all of your baskets. Basket name and Details links provide a breakdown of securities within each basket.

Can I place limit orders in basket trading?

No.

WATCH BASKETS

How do I use watch baskets?

After you construct a basket and indicate the amount youíre planning to allocate to the basket, you can either place a trade for the securities in the basket or save the basket as a watch basket for review, tracking, or subsequent purchase. You can save up to 20 watch baskets. You can continue to make adjustments to the contents of the basket before you decide to purchase it.

Watch baskets display net change detail based on current market value versus market value as of the last time you saved the watch basket.

Where can I view my purchased and watch baskets?

Choose Accounts & Trade > Portfolio Summary, then select Trade/View Baskets from the accountís Select Action drop-down list to display the Basket Summary page, which lists the baskets youíve purchased and created but not yet purchased. To view more details on a basket, click the basket name.

How do I change a basket name, or add or replace symbols in a watch basket?

On the Watch Basket page, click Add/Delete Symbol to display the Edit Basket page.

How do I recalculate changes to a watch basket?

On the Watch Basket details page, click the Recalculate link to update the Dollars Proposed or Shares Proposed fields for individual positions in a basket.

TRACKING GAIN AND LOSS

How can I track gain and loss of securities in my basket?

Baskets display Unrealized Net Change detail for both purchased and watch baskets. The initial purchase price of the basket is based on the principal amount of each position within the basket, exclusive of commissions. If you have multiple purchases of the same position within a basket, an average purchase price is used for that position.

Purchased baskets display a basketís total current market value, as well as the value of each position. The percent net change of a purchased basket accounts for additional purchases, liquidations, and certain corporate actions, but it does not provide the true cost basis of your positions within the basket.

Securities liquidated entirely from a basket are not be tracked in the basket detail information. You can view cost detail for individual positions within a basket from the Unrealized Net Change page.

How do I view unrealized net change details?

On the Basket Summary page, click the Details link under Unrealized Net Change for the basket you want to view.

Can I use unrealized net change information for tax planning purposes?

No. Unrealized Net Change detail for purchased or watch baskets is meant only as a guideline for individual position performance and basket performance, and is not intended for tax planning.

SELLING SPECIFIC SHARES

How do I sell specific shares of securities included in a purchased basket?

When selling shares on the Purchased Basket page, click the Choose Specific Shares checkbox for each security for which you want to sell specific shares. When you complete the trade, click Select Lot Details on the Trade Basket Confirmation page to display the Tax Lots page.

A Tax Lots page displays for each security for which you requested a specific shares order. Under Specify Lots, enter a priority and quantity for each lot you want to sell, or enter up to three additional lots by supplying the lot details under Enter Lots. Click Update Lots to display the Trade Baskets - Specify Shares Confirmation page. Click Next Symbol to specify lots for the next security. Continue until youíve specified lots for all the securities for which you want to sell selected lots.

The total number of specified tax lot shares cannot be greater than the total number of shares for the order. If the total specified tax lot shares is less than the total for the order, the remaining unspecified shares will be sold using the first in/first out (FIFO) accounting method.

Fidelity does not validate tax lot shares with a cost basis source of Customer and lots you enter manually. Ultimately, it is your responsibility to maintain accurate tax lot records.

When can I update specific shares for a sell order in a basket?

You can modify specific share data online up to 10:00 p.m. ET on the day of the trade. You can make changes subsequent to that time only through a Fidelity phone representative.

What is tax lot priority?

When specifying tax lots for sell orders in a basket, you assign each tax lot a priority number. The priority number indicates the order in which you want the shares to be traded. You can enter a number from 1 to 13, depending on how many tax lots you choose. You can use each priority number only once across both the Specify Lots and Enter Lots sections of the Tax Lots page. For example, a tax lot under the Specify Lots section can have a priority of 1, or a lot under the Enter Lots section can have a priority of 1, but not both.

Why is specifying tax lot priority important?

Choosing and prioritizing the order in which specific tax lot shares are traded allows you to minimize or maximize the gain or loss you will realize after a trade order executes. In many cases, an order can execute with the full share amount sold all at once. However, if an order is partially executed (as may occur, for example, with thinly traded stocks or large share quantities), the priority you specify sets the order in which the tax lot shares are sold.

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