Home > Glossary > Cash And Carry Trade
Cash And Carry Trade
Categories: Strategies, Investing and Trading, Futures,
An arbitrage strategy usually consisting of the purchase of a particular security and the sale of a similar security (often the purchase of a security and the sale of a corresponding futures contract). cash and carry trading is done when the investor feels that the two securities are mispriced with respect to each other, and that the mispricing will correct itself such that the gain on one side of the trade will more than cancel out the loss on the other side of the trade. In the case of such a trade taking place on a security and the futures contract, the trade will be profitable if the purchase price plus the cost of carry is less than the futures price. also called basis trading.
Featured term of the day
Definition / Meaning of
Erection All Risks (EAR) Insurance
Categories: Insurance,
removed
Most popular terms
1. Discrimination2. Consensus Recommendation
3. Direct Action
4. Net Asset Value (NAV)
5. Prohibited Transactions
6. Option Backdating
7. Fill Or Kill Order (FOK)
8. Hybrid Mortgage
9. Use In Commerce
10. Substitute Check
Search a term
Browse by alphabet
A | B | C | D | E | F | G |
H | I | J | K | L | M | N |
O | P | Q | R | S | T | U |
V | W | X | Y | Z | # |
Browse by category
AccountingBanking
Bankruptcy Assistance
Bonds and Treasuries
Brokerages
Business and Management
Compliance and Governance
Credit and Debt
E-commerce
Economics
Estate Planning
Forex
Fraud
Fundamental Analysis
Futures
Global
Insurance
International Trade
Investing and Trading
Ipos
Legal
Loan and Mortgage
Mergers and Acquisitions
Mutual Funds
Operation and Production
Options
Patent
Personnel Management
Real Estate
Retirement and Pension
Statistics and Risk Management
Stocks
Strategies
Tax
Technical Analysis
Venture Capital