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Market Intelligence › Basic Terminologies
A practical tool for multi-leg strategies and portfolio entry
Published by The Retail Trader · AUG 03, 2026 · Order Flow
A basket order is a way of sending several orders together. Its real benefit is in situations where the problem is that the different legs get filled at different times.
Option strategies have two or four legs. If one leg gets filled and the other does not, then for a while your position is not what you thought it was.
In that gap the risk is completely different, and the margin can be much higher too. A basket narrows that gap.
A basket order does not guarantee a fill:
• Each leg is still a separate order — some may fill, some may not.
• Legs can fill at different prices, so the net price can differ from the plan.
• This problem is worst in illiquid strikes.
• The margin benefit is available only once the whole structure is built.
When building a multi-leg position, always fill the hedge leg first and the risk leg afterwards. Do it the other way round and for a few minutes you hold a naked position — and the margin snapshot can also land in that very minute.
This article is for educational purposes only — it is not a buy or sell recommendation, makes no guaranteed-return claim, and is not advisory. Rules, rates and mechanics are changed from time to time by the exchanges, SEBI and RBI, so verify every number yourself with your broker or an official source.