Commodity Futures Contract Definition Example and Trading

Definition and Explanation A commodity futures contract is a legally binding agreement to buy or sell a specific quantity of a commodity at a predetermined price on a future date. It is a standardized contract traded on a futures exchange, which acts as an intermediary between buyers and sellers. Commodity …

Cash-and-Carry Arbitrage: Definition and Example

Cash-and-Carry Arbitrage: Definition and Example In the world of financial futures trading, one strategy that traders often employ is called cash-and-carry arbitrage. This strategy involves taking advantage of price discrepancies between the spot market and the futures market to make a profit. What is Cash-and-Carry Arbitrage? Cash-and-carry arbitrage is a …