trading-edge

What is a Cash and Carry Strategy?

A cash and carry strategy is an arbitrage strategy used in financial markets to take advantage of pricing inefficiencies between an asset's spot price and its futures price. This strategy, also known as basis trading, involves buying the underlying asset in the spot market at the current price and simultaneously selling a futures contract for the same asset at a higher price. The trader then holds the asset until the futures contract expires, at which point the prices converge, and the trader profits from the difference.   

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What is a Cash and Carry Strategy?

A cash and carry strategy is an arbitrage strategy used in financial markets to take advantage of pricing inefficiencies between an asset's spot price and its futures price. This strategy, also known as basis trading, involves buying the underlying asset in the spot market at the current price and simultaneously selling a futures contract for the same asset at a higher price. The trader then holds the asset until the futures contract expires, at which point the prices converge, and the trader profits from the difference.   

To learn more, read here
https://www.investopedia.com/terms/c/cash-and-carry-arbitrage.asp