The Rockets also are sending a second-round pick to Indiana in the deal with Houston getting the rights to Maarty Luenen in return from the Pacers.
Indiana plans to waive both players, a league source told ESPN.
It's the third time that Stauskas and Baldwin have been traded this week. They were acquired by the Cleveland Cavaliers in the deal that sent Rodney Hood to the Portland Trail Blazers, and then they went to Houston in the three-time trade that landed Iman Shumpert with the Rockets.
Stauskas, a 25-year-old shooting guard, is averaging 6.1 points, 1.8 rebounds and 1.4 assists in 44 games this season. Baldwin, a 22-year-old point guard, is averaging 1.9 points in 16 games this season.