Bitcoin Logs Biggest Single-Day Gain Since October, Market-Neutral Bets Yield 3x U.S. Treasury Notes

Bitcoin Logs Biggest Single-Day Gain Since October, Market-Neutral Bets Yield 3x U.S. Treasury Notes

Source Node: 2499396

Cash and carry arbitrage is a market-neutral strategy that seeks to profit from price discrepancies in spot and futures markets. The arbitrageur combines a long position in the spot market with a short position in futures when futures trade at a premium to spot prices. As futures expiry nears, the premium evaporates, and on the day of the settlement, futures converge with spot prices, generating a relatively risk-less return to the arbitrageur.

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