Cash and carry is a popular arbitrage strategy that involves:

1. Buying an asset in the cash market (spot market)

2. Selling the same asset in the futures market (at a higher price)

3. Holding the asset until the futures contract expires

The goal is to profit from the price difference between the cash and futures markets, while minimizing risk. Here's how it works:

1. Buy the asset in the cash market at a lower price (e.g., $100)

2. Sell the same asset in the futures market at a higher price (e.g., $105)

3. Hold the asset until the futures contract expires

4. Deliver the asset against the futures contract and pocket the profit ($5)

This strategy is called "cash and carry" because you're buying the asset for cash in the spot market and carrying it until the futures contract expires. It's a low-risk strategy, as you're not exposed to market fluctuations, and the profit is locked in through the futures sale.

Cash and carry is commonly used in commodities, bonds, and currency markets, where the price difference between cash and futures markets can be significant. However, it requires access to both cash and futures markets, and the ability to hold the asset until the futures contract expires.