Cash and Carry Transaction

Cash and Carry Transaction
A type of transaction in the futures market in which the cash or spot price of a commodity is below the futures contract price. Cash and carry transactions are considered arbitrage transactions.

The carrying costs in a cash and carry transaction are not deductible if the underlying commodity or security is part of a balanced position. These costs are instead capitalized and added to the basis.


Investment dictionary. . 2012.

Игры ⚽ Нужно решить контрольную?

Look at other dictionaries:

  • cash-and-carry — An arbitrage transaction involving the simultaneous purchase of a cash commodity with borrowed money and the sale of the appropriate futures contract. Exchange Handbook Glossary * * * Ⅰ. cash and carry UK US (plural cash and carrys) (also cash… …   Financial and business terms

  • cash and carry — An arbitrage transaction involving the simultaneous purchase of a cash commodity with borrowed money and the sale of the appropriate futures contract. Exchange Handbook Glossary * * * cash and carry ˌcash and ˈcarry noun cash and carrys… …   Financial and business terms

  • cash market — A place where people buy and sell the actual commodities, i.e., grain elevator, bank, etc. Spot usually refers to a cash market price for a physical commodity that is available for immediate delivery. A forward contract is a cash contract in… …   Financial and business terms

  • Cash Price — The actual amount of money that is exchanged when commodities are bought and sold. The cash price usually will include all transaction, carry and transportation costs. Investors looking to benefit from changes in commodity prices can invest in… …   Investment dictionary

  • transaction — noun ADJECTIVE ▪ cross border, international ▪ private ▪ fraudulent (esp. BrE), illegal, suspicious ▪ The president had entered into fraudulent property …   Collocations dictionary

  • Computers and Information Systems — ▪ 2009 Introduction Smartphone: The New Computer.       The market for the smartphone in reality a handheld computer for Web browsing, e mail, music, and video that was integrated with a cellular telephone continued to grow in 2008. According to… …   Universalium

  • Business and Industry Review — ▪ 1999 Introduction Overview        Annual Average Rates of Growth of Manufacturing Output, 1980 97, Table Pattern of Output, 1994 97, Table Index Numbers of Production, Employment, and Productivity in Manufacturing Industries, Table (For Annual… …   Universalium

  • Media and Publishing — ▪ 2007 Introduction The Frankfurt Book Fair enjoyed a record number of exhibitors, and the distribution of free newspapers surged. TV broadcasters experimented with ways of engaging their audience via the Internet; mobile TV grew; magazine… …   Universalium

  • international payment and exchange — ▪ economics Introduction international exchange also called  foreign exchange        respectively, any payment made by one country to another and the market in which national currencies are bought and sold by those who require them for such… …   Universalium

  • Eagle Cash — (also: EagleCash) and EZPay are two related systems of stored value cards developed by the U.S. Military for use at military facilities domestically and overseas. The systems center around a small plastic card, similar to a credit or debit card,… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”