The Cash and Carry strategy is an arbitration technique used in the financial market to obtain profit through the simultaneous purchase and sale of an asset1 . Here's a summary of how it works: Spot Purchase: The investor buys an asset on the spot market. Future Sale: At the same time, the investor sells a futures contract for the same asset1 . Profit by Difference: Profit is obtained by the difference between the purchase price in the spot market and the sale price in the futures market1 . This strategy exploits the price difference between spot and futures markets, guaranteeing profitability if the asset's price in the future is higher than the current purchase price1 .
That's what I understood, the principle is very simple.
J_BIACK
npub1ag…4end5
2024-10-24 17:18:48
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wss://relay.nostr.bandPublished at
2024-10-24 17:18:48Event JSON
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"content": " The Cash and Carry strategy is an arbitration technique used in the financial market to obtain profit through the simultaneous purchase and sale of an asset1 . Here's a summary of how it works: Spot Purchase: The investor buys an asset on the spot market. Future Sale: At the same time, the investor sells a futures contract for the same asset1 . Profit by Difference: Profit is obtained by the difference between the purchase price in the spot market and the sale price in the futures market1 . This strategy exploits the price difference between spot and futures markets, guaranteeing profitability if the asset's price in the future is higher than the current purchase price1 .\n\nThat's what I understood, the principle is very simple.",
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