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 ?
This means these projects would either go to private players as annuity projects or the government has to award them as cash contracts.
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.
As time passed, the percentage of product, especially tomatoes, procured through cash contracts increased.
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.
In contrast, revenue recognized in accordance with US GAAP represents cash contracts written net of estimated customer returns plus actual cash collections on financed contracts.