reverse cash-and-carry-arbitrage
Definition
An arbitrage strategy that involves purchasing a short position on an asset, either a stock or commodity, as well as futures for the same asset. This is done in an effort to make a riskless profit, by exploiting price inefficiencies in the market. This strategy only works if the futures price is lower than the asset's current price.
Recommended Articles from InvestorGuide.com
Related Videos
Featured Advertiser
