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![Bitcoin (BTC) Logs Biggest Single-Day Gain Since October, Market-Neutral Bets Yield 3x That of Treasury Notes Bitcoin (BTC) Logs Biggest Single-Day Gain Since October, Market-Neutral Bets Yield 3x That of Treasury Notes](https://www.coindesk.com/resizer/V7QHskjEnNZOLyj2ubbSEr12K6s=/1200x628/center/middle/cloudfront-us-east-1.images.arcpublishing.com/coindesk/Y3W2WVH7UNEXNFTU2XGV7UCV4U.jpg)
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.