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cash contract

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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.

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Sell half and buy call; buy put on half Establish a price floor on half of your expected crop by forward selling-a cash contract, hedged-to-arrive or short futures.
amp;nbsp;   To benefit with little market risk, we can enter into a cash contract or hedge by selling December 2007 futures and wait for futures to fall, the cash market to rise, or both.
In an ideal year, Green locks in the futures price via a futures sale or a hedged-to-arrive contract on a spring rally and waits to fix basis in July or August, converting the sale to a forward cash contract.
 
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