Cash and carry arbitrage is a market-neutral strategy that seeks to profit from price discrepancies in spot and futures markets. The arbitrageur combi
Cash and carry arbitrage is a market-neutral strategy that seeks to profit from price discrepancies in spot and futures markets. The arbitrageur combines a long position in the spot market with a short position in futures when futures trade at a premium to spot prices. As futures expiry nears, the premium evaporates, and on the day of the settlement, futures converge with spot prices, generating a relatively risk-less return to the arbitrageur.
www.coindesk.com
COMMENTS