J_BIACK on Nostr: The Cash and Carry strategy is an arbitration technique used in the financial market ...

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.