cash-and-carry trade

cash-and-carry trade definition - finance
A trade in which an investment or index-equivalent position is purchased in the cash market and an equivalent futures contract is sold. The purpose is to profit from a narrowing of the basis. Also called buying the basis.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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