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 ?
Both contracts are cash settled and build on six other DME-Oman linked cash contracts launched in December 2010.
Commodities Online negotiates purchase contracts with commodities producers and corresponding sales contracts with commodities buyers, which together are known as "pre-sold" or "buy-sell" cash contracts.
The highway authority is expected to give away close to 6,000 km of roads through cash contracts. Much inspiration can also be derived from the fact that the allocation during the current year to National Highways Authority of India (NHAI) has been stepped up.
All types of price risk management be they futures, options, swaps, or forward cash contracts involve the trade-offs between cash streams and the risk associated with each stream.
As time passed, the percentage of product, especially tomatoes, procured through cash contracts increased.
TVG's equity base was hemorrhaging at this time due to loss of members and increased use of cash contracts, which presented no opportunity for a retain.
He added, ``The cooling off period applies to most cash contracts over pounds 35 which have been entered into during an unsolicited visit by a trader.
Honor has been on a rapid rise in the fashion world, attracting huge cash contracts from the most exclusive design houses.
You could use futures, options, cash contracts or combinations of these to establish a price level, a maximum price level, or a range of prices for ingredients.