Cash commodity

Cash commodity

The actual physical commodity, as distinguished from a futures contract.
References in periodicals archive ?
The use of a futures contract to actually buy or sell a cash commodity is usually low (averaging 5 percent of total futures contracts traded, but sometimes reaching 20 percent or more).
Since the value of the futures contract is directly tied to the cash commodity it is said to be a one-step derivative.
The attraction seems to be mutual, but Butch seems to have trouble with emotional intimacy, not to mention viewing sex as anything but a "gay-for-pay" cash commodity.
basis trade--futures contract trading process that involves the relative difference between the futures market and the market for the underlying cash commodity.
double derivative--a contract that draws its value two steps removed from the original source such as an option contract that derives its value from a futures contract which in turn derives its value from the underlying cash commodity.
long--an initial buy position of a futures or options contract or the physical ownership of the cash commodity.
one-step derivative--a contract whose value is determined from another contract that is once removed from the original source such as a futures contract that derives its value from the underlying cash commodity.