Cash commodity

Cash commodity

The actual physical commodity, as distinguished from a futures contract.
References in periodicals archive ?
Pioneer Hi-Bred and Farms Technology, LLC, announce e-PitSM, a new proprietary service technology available through www.MarketPoint.com that will simplify and speed up grain commodities hedging for buyers by providing concurrent electronic hedge orders and cash commodity transactions.
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.
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. Nonetheless, the duo spend the next morning sleeping (platonically) together in Butch's apartment, which features a cornucopia of professional fetish gear.
Actuals - A physical or cash commodity, as distinguished from commodity futures contracts or options which derive their value from a specified commodity.
The two counterparties buy and sell the actual cash commodity in the normal market channel; however, the cash flow they agree to swap is based on a reference price so that they are both swapping values based on a common price.
First, because they are legally binding contracts they can be used as a way to sell or buy a cash commodity. If a food processing company buys a March futures contract on corn, they could wait until March and demand delivery of corn at the contract term's 5,000 bushels of #2 yellow corn and they would pay the price specified in the original contract.
A futures contract derives its value from the underlying cash commodity, thus it is said to be a derivative contract.
The value of the underlying futures contract determines the value of the options contract, thus an option on a futures contract is double derivative, or a two-step derivative, because the futures contract's value was derived from the cash commodity's value and the value of the options contract is derived from the futures contract.