Cash-and-Carry-Arbitrage

Cash-and-Carry-Arbitrage,

Definition of Cash-and-Carry-Arbitrage:

Cash and carry arbitrage is a neutral market strategy that combines the purchase of long positions in assets such as stocks or commodities and the sale of (short) positions in futures contracts on the same asset. . It aims to take advantage of the inability to create asset prices in the spot (or spot) market and risk-free profits in the futures markets. In theory, future contracts should be expensive in relation to the underlying assets, otherwise arbitration would not be beneficial.

  • Cash and transfer arbitrage seeks to take advantage of price volatility between spot and futures markets, buy assets in the previous market and open short positions in futures contracts for the same assets. The idea is to provide assets for physical delivery by the expiration date of the future contract.
  • Casendcry's arbitration is not entirely risk-free, as there may be costs involved in physically carrying the assets until they expire.

Literal Meanings of Cash-and-Carry-Arbitrage

Cash:

Meanings of Cash:
  1. Money in the form of coins or notes is compared to a check, money order or loan.

Synonyms of Cash

money, ready cash, ready money, currency, legal tender, hard cash, exchange, change, convert into cash, convert into money, turn into cash, turn into money, encash, realize, liquidate

And:

Meanings of And:
  1. It is used to include words in a language, sentence or part of a sentence that needs to be included.

  2. It is used to offer additional comments or penalties.

  3. It is used to indicate intention after some verbs and before other verbs instead of "to".

  4. Boolean operator who returns if and only if all the operations are the same and vice versa has a value of zero.

Sentences of And
  1. If it was an option and it was the worst, he would have left his parents

Synonyms of And

together with, along with, with, as well as, in addition to, including, also, too, added to, and, not to mention, besides, coupled with

Carry:

Meanings of Carry:
  1. Support and move from one place to another (something else).

  2. Supports weight.

  3. (Dust, bullets, rockets, etc.) It has reached a certain place.

  4. Accept or accept (responsibility or error)

  5. It has features or consequences.

  6. Approval by majority vote (proposed action).

  7. Move (one digit) to adjacent columns during the math process (for example, if there are more than ten in the number column).

  8. Lifting something and moving it from one place to another.

  9. Limit of firearms or similar weapons.

  10. Maintaining an investment position on the stock exchange, especially in relation to the costs or benefits generated.

Sentences of Carry
  1. The doctor brought an injured man on a stretcher

  2. The bridge can also carry the heaviest load

  3. Her voice clearly crossed the room

  4. You have to take responsibility for the mess you create in this business.

  5. Karate is a martial art and there is a risk of injury.

  6. The resolution was passed by a two-man majority

  7. If you have more than 10 in total, write down the digits for tomorrow and be sure to add something to your next partner.

Synonyms of Carry

convey, transfer, move, take, bring, bear, shift, switch, fetch, transport, support, sustain, stand, prop up, shore up, bolster, underpin, buttress, be audible, travel, reach, be transmitted, undertake, accept, assume, shoulder, entail, involve

Arbitrage:

Meanings of Arbitrage:
  1. Simultaneous purchase and sale of securities, currencies or commodities in different markets or derivatives simultaneously to use different prices for the same asset.

  2. Buy and sell assets through arbitration.

Sentences of Arbitrage
  1. Opportunities for mediation

  2. Most short sales are made by people close to the bond and the stock market.