Cash and Carry Arbitrage Strategy Definition Real World Usage

1024 reads · Last updated: January 3, 2026

Cash-and-carry-arbitrage is a market-neutral strategy combining the purchase of a long position in an asset such as a stock or commodity, and the sale (short) of a position in a futures contract on that same underlying asset. It seeks to exploit pricing inefficiencies for the asset in the cash (or spot) market and futures market, in order to make profits.

Suggested for You

Refresh