cash contract

(redirected from Carry trades)

Cash Contract

A trade of a security or a derivative where settlement occurs on the same trading day. This is fairly unusual; most contracts are settled between one and three days later. Generally speaking, cash contracts are most common in the last week of the calendar year when many trades must be settled sooner to guarantee tax advantages for one or both parties. It is also called a cash trade.

cash contract

A fairly unusual security transaction in which settlement with payment and security delivery are to occur on the same day as the trade date. This type of trade often occurs during the last week of a calendar year when sellers wish to settle early in order to realize a gain for tax purposes. Also called cash trade. Compare regular-way contract.
Mentioned in ?
References in periodicals archive ?
And it is this rally that is rattling the carry trades of old.
A tipping point for the carry trade
We can't say for sure whether this policy will lead to a yen carry trade and flooding in cheap foreign funds (on the local markets) because there are a lot of stages that such a policy has to go through before leading to actual carry trades," a senior official at the Bank of Korea said.
Asia upbeat on Japan's $1.4trn push
As in all of our work, here we consider a carry-trade strategy that combines individual-currency carry trades into an equally-weighted portfolio.
Understanding the profitability of currency-trading strategies
The bank said that it was considering action against activities such as carry trades that involve its short-term deposits that pay more than longer-dated government debt.
-Philippine central bank prepared to take action against speculation
That would enhance the yen's appeal as a funding currency of choice amongst investors like hedge funds and model funds, which are increasingly looking to sell the yen and buy high-yielding currencies, called carry trades.
Dollar rallies as jobs data fuels Fed policy talk
Since carry trades underperform when volatility is high (due to the threat of capital losses that may overwhelm carry income), a rise in volatility is unfavorable for the strategy.
Risk Appetite Stalls But the Dollar and Dow Maintain Trend Through Week's End
Centre designed to carry trades education into 21st century
College expansion underway
Signs of a rise in speculative interest against the yen were evident in both a rise in dollar/yen turnover and reports of a recent surge in hedge funds' yen carry trades.
Yen regains its standing as currency of choice
long bond on fears that the new Federal Reserve Chairman would raise rates further for longer than was previously expected, and the change in monetary policy at the Bank of Japan with the implications that has for carry trades around the world.
Eastern European Markets Still Attractive, Baring Asset Management Says; Recent Sell-Off No Cause for Concern
The common European currency jumped to the mid-163 yen level, rising nearly 3 yen from late Wednesday in Tokyo, as yen carry trades picked up pace after both the Dow Jones Industrial Average and the Nikkei Stock Average shot up over 2 percent.
Dollar tops 110 yen as sense of relief emerge on soaring stocks
4 percent, the news failed to spur optimism in the markets, as evidenced by the subsequent drop in equities and carry trades.
US Dollar Dives in Low Volume Trading - US Personal Income and Spending Due Out on Friday
The US dollar and Japanese yen fell against the commodity dollars on Monday as risk appetite drove carry trades higher through the start of the US trading session.
US Dollar, Japanese Yen Price Action to Remain Choppy Ahead of US Consumer Confidence Report

Financial browser ?
Full browser ?