An arbitrage strategy that involves purchasing a short position on an asset, either a stock or commodity, as well as futures for the same asset. This is done in an effort to make a riskless profit, by exploiting price inefficiencies in the market. This strategy only works if the futures price is lower than the asset's current price.
Related information about reverse cash-and-carry-arbitrage:
- Reverse Cash-and-Carry-Arbitrage Definition | Investopedia
A combination of a short position in an asset such as a stock or commodity, and a long position in the futures for that asset. Reverse cash-and-carry arbitrage ...
- What is reverse cash-and-carry-arbitrage? definition and meaning
Definition of reverse cash-and-carry-arbitrage: An arbitrage strategy that involves purchasing a short position on an asset, either a stock or commodity, as well as ...
- reverse cash-and-carry arbitrage - DerivActiv.com - Financial Term ...
REVERSE CASH-AND-CARRY ARBITRAGE. A technique, used mainly in bond futures and stock index futures, that involves buying a futures contract and ...
- CFA, Alternative, Investment, Reverse, Cash-and-Carry, Arbitrage
May 23, 2011 ... Cash-and-carry/Reverse Cash-and-carry arbitrage (2008 CFA Exam. 2011 Curriculum Book. EOC)
- Forward contract - Wikipedia, the free encyclopedia
But if you look at the convenience yield page, you will see that if there are finite stocks/inventory, the reverse cash and carry arbitrage is not always possible.
- FRM - Schweser - Topic 32 Flashcards
Mar 20, 2010 ... execute a reverse cash and carry arbitrage if the futures contract is underpriced relative to the non-arbitrage price. reverse cash and carry ...
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Reverse Cash and Carry Arbitrage. Cash and carry arbitrage involves buying the spot, borrowing money, and selling futures. Reverse cash and carry arbitrage ...
- Alternative Investment Strategy - HSBC InvestDirect
Dec 14, 2011 ... Reverse Cash and Carry Arbitrage. Reverse Cash and Carry Arbitrage opportunity arises when future is quoting at a discount to cash price.