A cash and carry trade is a transaction usually considered to be a type of arbitrage. In this transaction, an investor buys an asset while selling the future contract on the same asset for a given forward expiry date. Taking into account the cost associated with purchasing and keeping the asset until the expiry date of the future (borrowing the asset, storage for a commodity etc.), the investor will perform this arbitrage if the forward price of the asset derived from the spot price and the costs associated is lower than the future price of the asset.