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Meaning / Definition of

Reverse Cash-and-carry-arbitrage

Categories: Stocks, Strategies, Investing and Trading,

An arbitrage strategy that involves purchasing a short position on an asset, either a stock or commodity, as well as futures for the same asset. This is done in an effort to make a riskless profit, by exploiting price inefficiencies in the market. This strategy only works if the futures price is lower than the asset's current price.

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