Carry trade: Difference between revisions

Carry trade (view source)

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Revision as of 13:55, 29 July 2022 (view source) Amwelladmin (talk \| contribs) (Created page with "{{a\|g\|{{image¬carry trade\|png\|A classic commodities carry trade, yesterday. You execute the spot buy and the forward sale at the same time.}}}}A transaction where one tak...")		Revision as of 13:55, 29 July 2022 (view source) Amwelladmin (talk \| contribs) No edit summary Newer edit →
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	{{a\|g\|{{~~image¬carry~~ trade\|png\|A classic commodities [[carry trade]], yesterday. You execute the spot buy and the forward sale at the same time.}}}}A transaction where one takes advantage of the futures market.		{{a\|g\|{{image\|carry trade\|png\|A classic commodities [[carry trade]], yesterday. You execute the spot buy and the forward sale at the same time.}}}}A transaction where one takes advantage of the futures market.

	If you can see that the spot price of an asset today is lower than its forward price (as implied by the futures price) — that is, the forward curve is in [[contango]] — buy an amount greater than your [[cost of funding]], then all you have to do to make money is		If you can see that the spot price of an asset today is lower than its forward price (as implied by the futures price) — that is, the forward curve is in [[contango]] — buy an amount greater than your [[cost of funding]], then all you have to do to make money is