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Cash and carry trade
An Arbitrage strategy usually consisting of the Purchase of a particular security and the sale of a similar security (often the Purchase of a security and the sale of a corresponding Futures contract). Cash and carry Trading is done when the investor feels that the two securities are mispriced with respect to each other, and that the mispricing will correct itself such that the gain on one side of the Trade will more than Cancel out the loss on the other side of the trade. In the case of such a Trade taking place on a security and the futures Contract , the Trade will be profitable if the Purchase price plus the Cost of carry is less than the Futures price. also called Basis trading.
Related Terms: 20
ACH , Arbitrage , Basis , Basis trading , Cash , Call , Cancel , Car , Cost of carry , Contract , ECU , Futures , Futures contract , Futures price , ITS , Profit , Purchase , SEC , Trade , Trading
Semi Related Terms: 799 CLICK HERE TO VIEW
10-K ,
Accelerated Cost Recovery System ,
Accrual basis accounting ,
Acquisition cost ,
Adjusted basis ,
ACH ,
Adjustable rate ,
Above par ,
Accrual of discount ,
After-tax basis ,
Agency security ,
Amortization of premium ,
Asked price ,
Asking price ,
Asset-backed security ,
At par ,
All or any part ,
At best ,
At call ,
Adjustable rate preferred stock ,
Adjusted futures price ,
All-risks coverage ,
At risk ,
Add-on service ,
Abstract of title ,
Action to quiet title ,
Adhesion contract ,
As is ,
Assignment to creditors ,
Attorney in fact ,
Adjustable Rate Mortgage ,
Advance rate ,
Annual Percentage Rate ,
Applicable federal rate ,
Assignment of mortgage ,
A shares ,
Average price per share ,
Aggregate exercise price ,
At the money ,
Absorption rate ,
Age-weighted plan ,
Across the board ,
Additional paid-in capital ,
Arbitrage ,
Arbitrage house ,
Arbitrage Pricing Theory ,
Ad valorem ,
After-hours trading ,
Against the box ,
At the bell ,
At the close ,
At the figure ,
At the full ,
At the market ,
At the opening order ,
Automated Pricing and Reporting System ,
Away from the market ,
Accredited investor ,
Angel investor ,
Below the line ,
Book profit ,
Books of final entry ,
Books of original entry ,
Burn rate ,
Banking Act of 1933 ,
Below par ,
Benchmark interest rate ,
Bid-to-cover ratio ,
Block trade ,
Book-entry security ,
Bullet contract ,
Bureau of Public Debt ,
Brought over the wall ,
Buying on margin ,
Buy on close ,
Buy on opening ,
Buy the book ,
Balance of payments ,
Bank Rate ,
Base interest rate ,
Basis point ,
Board of Governors ,
Basis ,
Basis trading ,
Buying basis ,
Breaking the syndicate ,
Bill of exchange ,
Bill of sale ,
Breach of trust ,
By the book ,
Bailing out ,
Base rate ,
Blended rate ,
Broker loan rate ,
B shares ,
Buy and write ,
Buy-side ,
Balanced investment strategy ,
Barbell strategy ,
Bullet strategy ,
Break-even tax rate ,
Breadth-of-market theory ,
Beat the gun ,
Capitalized cost ,
Capital loss ,
Cash ,
Cash asset ratio ,
Cash basis ,
Cash budget ,
Cash control ,
Cash conversion cycle ,
Cash cycle ,
Cash earnings ,
Cash equivalence ,
Cash journal ,
Cash ratio ,
Contra account ,
Cost Accounting ,
Cost Of Goods Sold ,
Cost of sales ,
Cash reserves ,
Cabinet security ,
Call ,
Call date ,
Called away ,
Called bond ,
Call price ,
Call protection ,
Call risk ,
Cash equivalents ,
Certificate of Participation ,
Committee on Uniform Securities Identification Procedures ,
Conversion parity price ,
Conversion price ,
Convertible security ,
Coupon rate ,
Current production rate ,
Call money rate ,
Cancel ,
Cash account ,
Closed out ,
Code of procedure ,
Contra broker ,
Contract broker ,
Crossed trade ,
Covered arbitrage ,
Cash dividend ,
Capitalization of income ,
Capitalization rate ,
Cap rate ,
Civilian unemployment rate ,
Consumer Price Index ,
Cost of Living Adjustment ,
Cost-of-living index ,
Council of Economic Advisers ,
Car ,
Cash and carry trade ,
Cash commodity ,
Cash market ,
Cash price ,
Cash settlement ,
Chasing the market ,
Cheapest to deliver ,
Chicago Board of Trade ,
Commodities Exchange Act ,
Commodity futures ,
Commodity Futures Trading Commission ,
Commodity Trading Advisor ,
Contract grades ,
Contract market ,
Contract month ,
Cost basis ,
Cash surrender value ,
Cash value ,
Cash value life insurance policy ,
Cash withdrawal ,
Casualty loss ,
Cost-of-living rider ,
Certificate of stock ,
Cost of carry ,
Certificate of title ,
Contract ,
Contract for deed ,
Contract sale ,
Cancellation of debt ,
Cash advance ,
Cash collateral ,
Cash credit ,
Cash-out refinancing ,
Certificate of Claim ,
Commitment fee ,
Cost of debt capital ,
Cost of funds ,
Crowding out ,
C shares ,
Call option ,
Call ratio backspread ,
Call swaption ,
Class of options ,
Close to the money ,
Contract size ,
Conversion arbitrage ,
Covered call ,
Cash Against Documents ,
Certificate of Occupancy ,
Cloud on title ,
Cash-balance plan ,
Cash or Deferred Arrangement ,
Capital Asset Pricing Model ,
Cash sale ,
Class A Shares ,
Class B Shares ,
Convertible arbitrage ,
Crash of 1929 ,
Crash of 1987 ,
Compound arbitrage ,
Capital loss carryover ,
Child and dependent care credit ,
Coefficient of determination ,
Cup and handle ,
Cash buying ,
Cash delivery ,
Certificate of delivery ,
Close a position ,
Close out ,
Closing price ,
Closing purchase ,
Cornering the market ,
Curbs in ,
Curbs out ,
Depreciated cost ,
Direct profit ,
Deposit in transit ,
Date of issue ,
Date of payment ,
Digested security ,
Dollar price ,
Drawn securities ,
Droplock security ,
Division of Enforcement ,
Division of Investment Management ,
Division of Market Regulation ,
Do Not Reduce ,
Date of record ,
Dividend in arrears ,
Dividend rate ,
Desk (the) ,
Discount rate ,
Division of labor ,
Daily trading limit ,
Delivery price ,
Derivative security ,
Discounted Cash Flow Analysis ,
De-escalation clause ,
De facto ,
Doing business as ,
Durable Power of Attorney ,
Date of maturity ,
Debtor in possession ,
Debtor-in-possession financing ,
Deed of Release ,
Deed of Trust ,
Discharge of bankruptcy ,
Discharge of lien ,
Due-on-sale clause ,
Dollar cost averaging ,
Deep in the money ,
Deep out of the money ,
Deed of Surrender ,
Department of Housing and Urban Development ,
Distressed security ,
Defensive investment strategy ,
Dogs of the Dow ,
Daylight trade ,
Day trade ,
Depth of market ,
Effective annual interest rate ,
Eurodollar certificate of deposit ,
Escrowed to maturity ,
Exchangeable security ,
Exempt security ,
Either-or order ,
ECU ,
Exchange rate ,
Effective par ,
Economic growth rate ,
Edge Act ,
Employer Cost Index ,
Employment Cost Index ,
E-mini ,
Exchange for futures ,
Exchange of spot ,
Exchange versus cash ,
Effective tax rate ,
Employee Stock Purchase Plan ,
Ex-all ,
Exit strategy ,
Exit fee ,
Employee Retirement Income Security Act of 1974 ,
First In First Out ,
Fixed cost ,
Federal Savings and Loan Association ,
First call date ,
Fixed-income arbitrage ,
Flight to quality ,
Floating-rate bond ,
Flow of funds ,
Full price ,
Federal Call ,
Fill or kill ,
Front-ending an order ,
Floating exchange rate ,
Foreign exchange rate ,
Forward exchange rate ,
Forward P/E ,
Factors of production ,
Favorable balance of trade ,
Federal Reserve Discount Rate ,
Federal Trade Commission ,
Free market price ,
Free trade ,
Financial futures ,
Forward price ,
Futures ,
Futures contract ,
Futures option ,
Futures price ,
Fee-for-service ,
Form 8-K ,
Form S-1 ,
Forward pricing ,
Floating security ,
Friends and family offering ,
Fair Credit Reporting Act ,
Fair Debt Collection Practices Act ,
Fixed rate ,
Fixed-rate loan ,
Fixed-Rate Mortgage ,
Floating rate ,
Forward interest rate ,
Forward Rate Agreement ,
Forward sale ,
Full faith and credit ,
Family of funds ,
Fund of funds ,
Free and clear ,
Federal Insurance Contributions Act ,
Free right of exchange ,
Federal ID Number ,
Forward trade ,
Gross profit ,
Gross profit margin ,
Government securities ,
Government Securities Clearing Corporation ,
Graduated security ,
Guaranteed Investment Contract ,
General Securities Representative Examination ,
Glass-Steagall Act ,
G-7 ,
GDP implicit price deflator ,
General Agreement on Tariffs and Trade ,
G-8 ,
Growth strategy ,
Group sale ,
Growth and income fund ,
Gather in the stops ,
Historical cost ,
Hart-Scott-Rodino Act of 1976 ,
Hit the bid ,
House call ,
House of issue ,
Health Insurance Portability and Accountability Act ,
Holder in due course ,
Hang out loan ,
Home equity line of credit ,
Home Mortgage Disclosure Act ,
Head and shoulders ,
Hammering the market ,
Held at the opening ,
Historical trading range ,
Holding the market ,
Horizontal price movement ,
In escrow ,
Inflation-indexed security ,
Interest rate collar ,
Interest rate risk ,
Interest rate swap ,
International Securities Identification Number ,
Investment security ,
In-house ,
Investment Advisor Act of 1940 ,
Investment Company Act of 1940 ,
In line ,
Inflation rate ,
Interest rate futures ,
Interbank Rate ,
International trade ,
Insider trading ,
Insider Trading sanctions Act of 1984 ,
Internal Rate of Return ,
Investor relations ,
Indication of interest ,
In intestacy ,
Interest rate ,
Interest rate cap ,
Interest rate ceiling ,
Interest rate floor ,
In play ,
In-process research and development ,
Interest rate option ,
I/O strip ,
Installment sales contract ,
In-service withdrawal ,
Index arbitrage ,
Imbalance of orders ,
In and out ,
Individual investor ,
Institutional investor ,
In sympathy ,
Intermarket Trading System ,
In the tank ,
ITS ,
Jointly and severally ,
Jumping the gun ,
Joint will ,
Joint and several liability ,
Joint and survivor annuity ,
Knock-out option ,
Last In First Out ,
Lender of last resort ,
Law of one price ,
Letter security ,
Lending at a rate ,
Limit-on-close order ,
Limit price ,
Law of demand ,
Law of supply ,
Last trading day ,
London International Financial Futures and Options Exchange ,
London Inter-Bank Offer Rate ,
Long-Term Equity Anticipation Securities ,
Letter of comment ,
Legal age ,
Living will ,
Line of credit ,
Loan-to-cost ,
Loan-to-value ,
Lock-in ,
Land contract ,
Lease-purchase agreement ,
Leading the market ,
Ladder strategy ,
Locked in ,
Long-term gain or loss ,
Loss carryover ,
Last sale ,
Level I quotes ,
Modified cash basis ,
Marketable security ,
Market conversion price ,
Matrix trading ,
Mortgage-backed security ,
Mortgage pass-through security ,
Maintenance call ,
Maintenance fee ,
Make a market ,
Margin call ,
Margin rate ,
Market if touched order ,
Market on close order ,
Mark-to-market ,
Medium of exchange ,
Marginal propensity to consume ,
Market rate ,
Money at call ,
Mortgage rate ,
Marketable securities ,
Mill rate ,
Maximum price fluctuation ,
Net profit ,
Net profit margin ,
Non-cash expense ,
Negotiable certificate of deposit ,
Negotiable Order of Withdrawal ,
Negotiable security ,
Nominal rate ,
Notice of Sale ,
National Association of Securities Dealers ,
National Association of Securities Dealers Automated Quotations system ,
National Securities Clearing Corporation ,
National Securities Trade Association ,
National Futures Association ,
New York Futures Exchange ,
Null and void ,
Negative carry ,
Notice of Default ,
Naked call ,
National Association of Real Estate Investment Trusts ,
Normal retirement age ,
Nonaccredited investor ,
Off the books ,
One time charge ,
Operating cash flows ,
Original cost ,
Other current assets ,
Other long term liabilities ,
Office of Thrift Supervision ,
Offering price ,
Out-of-favor ,
Over-the-Counter ,
On-floor order ,
On margin ,
Or better ,
Operating profit margin ,
Other income ,
Operating rate ,
One-share one-vote rule ,
Opinion of title ,
On account ,
On-the-spot loan ,
Origination fee ,
Option contract ,
Option price ,
Option pricing curve ,
Out of the money ,
Old age, survivors, and disability insurance ,
Ordinary loss ,
On-balance volume ,
On close ,
One man picture ,
On open ,
On the opening ,
Open trade equity ,
Petty cash ,
Pooling of interests ,
Pre-depreciation profit ,
Pre-tax profit margin ,
Profit ,
Profit and loss statement ,
Profit margin ,
Pro forma ,
Par bond ,
Pass-through coupon rate ,
Payment-in-kind security ,
Price Value of a Basis Point ,
Provisional call feature ,
Purchase ,
Public Securities Association ,
P&L ,
Profit warning ,
Price index ,
Producer Price Index ,
Parity price ,
Price limit ,
Public offering price ,
Pour-over will ,
Power of Attorney ,
Positive carry ,
Preforeclosure sale ,
Prime rate ,
Prioritization of debt ,
Purchase-money mortgage ,
Prime rate fund ,
Pairs trade ,
Price spread ,
Passive loss ,
Purchase agreement ,
Profit-sharing ,
Prudent Expert Act ,
Paid-in capital ,
Paid-in surplus ,
Passive investor ,
Private Investment in Public Equity ,
Preservation of capital ,
Program trading ,
Point-and-figure chart ,
Profit ratio ,
Painting the tape ,
Paper loss ,
Paper profit ,
Paper trading ,
Plus tick ,
Plus tick rule ,
Priced out ,
Price range ,
Price-weighted index ,
Profit-taking ,
Put/call ratio ,
Qualified institutional investor ,
Replacement cost ,
Reports and Records ,
Retention rate ,
Return of capital ,
Return on Capital ,
Return on Invested Capital ,
Return on Total Assets ,
Run rate ,
Real interest rate ,
Rate covenant ,
Redemption price ,
Registered security ,
Residual security ,
Restricted security ,
Reading the tape ,
Real-time trade reporting ,
Regulation D ,
Regulation G ,
Regulation T ,
Regulation U ,
Round of funding ,
Rules of Fair Practice ,
Rate of exchange ,
Reciprocal of European terms ,
Real economic growth rate ,
Retail Price Index ,
Replacement cost insurance ,
Regulation A ,
Right of first refusal ,
Right of rescission ,
Right to Know ,
Rate-improvement ,
Rate lock ,
Renegotiable rate ,
Revolving line of credit ,
Right of recourse ,
Rule of 78 ,
Redemption fee ,
Reversal arbitrage ,
Right of redemption ,
Retirement Equity Act of 1984 ,
Risk/return trade-off ,
Risk arbitrage ,
Riskless arbitrage ,
Return on Capital Employed ,
Rate of return ,
Realized profit ,
Real rate of return ,
Retail investor ,
SEC filing ,
Selling, General and Administrative Expenses ,
SG&A ,
Sales fee ,
Savings and Loan ,
Sight letter of credit ,
S&L ,
SEC ,
Securities and Exchange Commission ,
Self-supporting bond ,
Series EE bond ,
Spot rate ,
Stamped security ,
SEC fee ,
Securities analyst ,
Securities Industry Association ,
Securities Investor Protection Corporation ,
Securities loan ,
Segregation of securities ,
Sell plus ,
Sell-side analyst ,
Sell the book ,
Stop-loss ,
Stop price ,
Savings rate ,
Standard of living ,
Supply-side economics ,
Swap rate ,
Settlement price ,
Single stock futures ,
Spot price ,
Spot trading ,
Strong basis ,
Second-to-die insurance ,
Self insurance ,
Subscription price ,
Statute of Limitations ,
Sale and leaseback ,
Satisfaction of debt ,
Securities lending ,
Security interest ,
Security loan ,
Self-amortizing mortgage ,
Senior security ,
Start rate ,
Staggered board of directors ,
Selling the spread ,
Self-directed retirement account ,
Self-employed pension ,
Social Security ,
Social Security Tax ,
Share price ,
Split-adjusted price ,
Security analysis ,
Selling short against the box ,
Shorting against the box ,
Short purchase ,
Short sale rule ,
Structured portfolio strategy ,
Swing trade ,
S Corporation ,
Self-employed ,
Self-employment tax ,
Short-term gain or loss ,
Standard mileage rate ,
Subchapter M ,
Subchapter S Corporation ,
Schedule C ,
Securities Act of 1933 ,
Securities Acts Amendments of 1975 ,
Securities Exchange Act of 1934 ,
Securities fraud ,
Seek a market ,
Small investor ,
Sophisticated investor ,
S&P phenomenon ,
Stop and reverse ,
Stopped out ,
Suspended trading ,
Total cost ,
T-Bill ,
Term to maturity ,
Trade ,
Trading ,
Treasury Inflation-Protected Security ,
Trust-preferred security ,
Take a position ,
Trading authorization ,
Two-sided market ,
Two-way market ,
Trailing P/E ,
Trade barrier ,
Trade deficit ,
Trade surplus ,
Trade house ,
Trading range ,
Tenancy by the entirety ,
Teaser rate ,
Truth in Lending ,
Two-step mortgage ,
Tenancy at will ,
Top hat plan ,
Ten-bagger ,
The Street ,
Timing the market ,
Tax basis ,
Tax loss carryback ,
Tax loss carryforward ,
Taxpayer Relief Act of 1997 ,
Tax Reform Act of 1986 ,
Tax Reform Act of 1993 ,
Tax sale ,
Trading profit ,
Top out ,
Trading Index ,
Take a bath ,
Target price ,
Trade date ,
Trading costs ,
Trading curb ,
Trading floor ,
Trading halt ,
Trading session ,
Trading volume ,
U.S. Government Agency Security ,
U.S. Savings Bond ,
U.S. Treasury ,
U.S. Treasury Bill ,
U.S. Treasury Bond ,
U.S. Treasury Note ,
U.S. Treasury Securities ,
Uniform Securities Act ,
Unlisted trading ,
Unappropriated profit ,
Unemployment rate ,
Underlying security ,
Uncovered call ,
Unit of trade ,
Unit of trading ,
Unrealized loss ,
Unrealized profit ,
Variable rate ,
With interest ,
Williams Act ,
Wrap fee ,
Wage price spiral ,
World Trade Organization ,
Waiver of premium ,
Widow-and-orphan stock ,
W-2 Form ,
Wash sale rule ,
W formation ,
When, as, and if issued ,
When issued ,
X or XD ,
Year-To-Date ,
Yield to call ,
Yield to maturity ,
Yield to worst ,
Y shares ,
Zero-plus tick