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Tag: cash-and-carry

Time traveler tinkers with hourglass gears to align cash (spot) and futures market prices

Understanding Cash-and-Carry Arbitrage in Finance: Seizing Opportunities with Minimal Risk

May 10, 2024 FinanceFacts101 Financial Tools

Introduction to Cash-and-Carry Arbitrage Cash-and-carry arbitrage is a popular market-neutral trading strategy that capitalizes on price discrepancies between the cash (spot) and futures markets for an asset. By simultaneously acquiring the underlying asset in its physical form and selling a futures contract based on it, an investor can profit from

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