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. LoveToKnow. www.yourdictionary.com/cash-and-carry-trade.
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Cash-and-carry trade. (n.d.). In YourDictionary. Retrieved from https://www.yourdictionary.com/cash-and-carry-trade
