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.
cash-and-carry trade - Investment & Finance Definition
Webster's New World Finance and Investment Dictionary Copyright © 2010 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
Used by arrangement with John Wiley & Sons, Inc.
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"cash-and-carry trade." YourDictionary, n.d. Web. 08 December 2018. <https://www.yourdictionary.com/cash-and-carry-trade>.
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cash-and-carry trade. (n.d.). Retrieved December 08th, 2018, from https://www.yourdictionary.com/cash-and-carry-trade
