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Cash-And-Carry Trade

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Dictionary Says

Definition of 'Cash-And-Carry Trade'

A trading strategy that involves the simultaneous trading of two similar securities in order to recognize an arbitrage profit. Also known as "basis trading" or "buying the basis."
Investopedia Says

Investopedia explains 'Cash-And-Carry Trade'

In a cash & carry trade, the first trade involves the purchase of a particular type of security, (usually a stock, index, or commodity), and the second involves a short trade in the asset underlying the security, (usually a futures contract).

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