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Key Takeaways
- A cash-and-carry trade is an arbitrage strategy that profits off the mispricing between the underlying asset and its corresponding derivative.
- A cash-and-carry trade is usually executed by entering a long position in an asset while simultaneously selling the associated derivative.
- Specifically, this is done by going short the market via a futures or options contract.
www.investopedia.com/terms/c/cashandcarry.asp- People also ask
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