cash market

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Related to cash market: money market, Derivative market

Spot Market

A market in which an asset bought or sold is delivered immediately. To give a basic example, if one buys a stock and it is delivered immediately, one utilizes the spot market. It differs from derivatives markets like futures. Perhaps less commonly, it is called the cash market.

cash market

The market in which trades are made for the immediate sale or purchase of a particular item. Cash market is commonly used in commodities trading to differentiate transactions involving immediate or nearly immediate delivery from transactions requiring delivery at a future time. Also called spot market.

Cash market.

In a cash market, buyers pay the market price for securities, currency, or commodities "on the spot," just as you would pay cash for groceries or other consumer products.

Cash markets are also called spot markets. A cash market is the opposite of a futures market, where commodities or financial products are scheduled for delivery and payment at a set price at a specified time in the future.

In a cash market, ownership is transferred promptly, and payment is made upon delivery.

References in periodicals archive ?
For Quality Cash Market, the ounce of prevention was worth much, much more than a pound of cure," said Heath.
Let's assume the stock of ABC Ltd is trading at Rs 200 in the cash market and at Rs 180 in the futures market.
However, short selling via the derivatives market has drawbacks compared with doing it through SLBS in the cash market.
The company had argued that it would be impossible to conclude that IBP's purchase of cattle through marketing agreements and forward contracts depressed prices in the cash market.
This leaves the October futures at a 770 point premium to the cash market as compared with a more normal relation near a 150 point discount at this time of the year.
The Hong Kong cash market went down also because the Tokyo market failed to react to the overnight rebound of the Dow Jones Industrial Average, Wong said.
Fitch's analysis also examines the CDS/LCDS relationship, which allows researchers and investors to make inferences with regard to the market's perception of relative recovery rates for the underlying cash instruments, as well as the relationship between certain credit derivative and cash market indices.
S government band market (measured by the standard deviation of daily changes in yield in the cash market or by implied volatility in the options market) has risen in recent weeks, it has by no means been extraordinarily high.
The average rose above the 11,600 level in midmorning, after a flurry of buying in the futures market, apparently by institutional investors, prompted buying in the cash market.
It is advisable to use average open interest along with the daily open interest and futures prices while predicting the cash market direction.
Four programs daily (Mon-Fri) for 17 minutes of farm and commodity news; two five-minute general farm news from international, national and regional sources; one program daily featuring research in agriculture; one program daily featuring commodity market news, including daily cash market reports.
This increase is due to the 74% increase in revenue from clearing in the cash market (EUR5.