cash and carry

(redirected from Cash and Carry Act)
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Cash and Carry Trade

A transaction in which one takes a short position on a futures contract and a long position on the underlying asset where the spot price, or current price, of the underlying commodity is below the price in the futures contract. Making a profit from a cash and carry trade is considered a form of arbitrage. That is, one uses a cash and carry trade to make money from uncertainty or inefficiency in the market, in this case, with regard to the future price of the underlying asset. This is also called buying the basis.

cash and carry

a form of wholesaling which requires customers (predominantly RETAILERS) to pay cash for products bought and to collect these products themselves from a warehouse. By eliminating the costs involved in offering credit terms and a delivery service, such WHOLESALERS are able to offer products at highly-competitive prices. See DISTRIBUTION CHANNEL.

cash and carry

a form of wholesaling that requires customers (predominantly RETAILERS) to pay cash for products bought and to collect these products themselves from a warehouse. See DISTRIBUTION CHANNEL.