cash contract

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Cash Contract

A trade of a security or a derivative where settlement occurs on the same trading day. This is fairly unusual; most contracts are settled between one and three days later. Generally speaking, cash contracts are most common in the last week of the calendar year when many trades must be settled sooner to guarantee tax advantages for one or both parties. It is also called a cash trade.

cash contract

A fairly unusual security transaction in which settlement with payment and security delivery are to occur on the same day as the trade date. This type of trade often occurs during the last week of a calendar year when sellers wish to settle early in order to realize a gain for tax purposes. Also called cash trade. Compare regular-way contract.
References in periodicals archive ?
The trader also asked brokers to manipulate their screens, to disseminate false information about prevailing market cash rates, and to make false bids and offers on cash trades in the market to skew perceptions of the rates at which cash could be borrowed or lent in the interbank market.
Using a mixture of cash trades and options, entities with currency exposure can mitigate risk and create potential upside.
At least 303 cases of unauthorised access were confirmed between late May and June 14, including three that involved cash trades resulting in financial loss, a Line spokesman told AFP, without providing further details.