Cash and carry


 

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Cash and carry

An arbitrage transaction applied on a futures market where the cash or spot price of for example, a commodity is less than the futures contract price.Under these circumstances a purchase of the cash commodity with borrowed money and the simultaneous sale of the futures contract can provide a profit.



Similar Matches

Loss Carry Back (Carry Forward)

Loss Carry Back (Carry Forward)

A tax provision that allows operating losses to be used as a tax shield to reduce taxable income in prior and future years. Losses can be carried backward for up to three years and forward for up to 15 years under current tax codes.


Carry forward

Carry forward

A term applicable to personal pensions regarding tax rules which allow an individual to make contributions, additional to the current tax year, for the six previous years where maximum contributions have not been made. However, before the carry forward rules apply, maximum contributions must first be paid for the current tax year.


Net operating loss carryforwards

Net operating loss carryforwards

Application of losses to offset earnings in future years.


Carrying value

Carrying value

Book value.


Carrying charges

Carrying charges

The cost of storing a physical commodity, consisting of interest on the invested funds, insurance, storage fees, and other incidental costs. Carrying costs are usually reflected in the difference between futures prices for different delivery months. When futures prices for deferred contract maturities are higher than for nearby maturities, it is a carrying charge market. A full carrying charge market reimburses the owner of the physical commodity for its storage until the delivery date.


Further Suggestions

Cost of carry market
Cash & carry
Net operating loss carrybacks
carry back
Carrying charge
Carrying costs
carrying broker
Carryforwards
Positive carry
Carry
Tax loss carryback, carryforward
Owner Will Carry Mortgage
Carrying Charges
Cost of carry


 
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