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 ?
Any proposal by FINRA to require reporting of Treasury cash market activity would be subject to review and approval by the Commission, in consultation with Treasury.
Trading volume is used as the proxy for success and is thus the dependent variable while the spot market size, the cash market variability and cash market liquidity are used as explanatory variables together with various dummy variables.
Indeed, some of the upward pressure in US cash markets looks to be a readjustment of prices amid infrastructure improvements.
However, short selling via the derivatives market has drawbacks compared with doing it through SLBS in the cash market. In the derivative market, the futures and options ( F& O) are traded in market lots, so one needs to compulsorily buy or sell a fixed number of contracts.
When the futures are trading at a discount to the cash market, one can short sell the shares by borrowing them through SLBS while simultaneously buying the futures contract.
Quality Cash Market was able to provide customers with high-quality meats with minimal disruption to their operations and much less damage to the facility.
A corn producer expects to produce 5,000 bushels and suffers a $1,000 loss in the cash market as shown in Figure 9-1.
Futures prices for feeder cattle contracts through November of 2006 are very similar to current cash market prices, which remain at historical record high levels.
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.
During periods of market stress, concerns arise with regard to the possibility of a "ripple effect" and the impact of derivatives activities on the liquidity of the cash market. Under a potential ripple effect, the increased use of derivatives could lead to the failure of one or more derivatives dealers, with this failure creating ripple effects throughout the OTC market for dealers and end users.
Some specialty roasters cite residual benefits realized when doing business with cash market operators who hedge.
HKEX said it saw record half-year revenue from its Stock Connect business, which "more than offset" the reduction in trading & clearing fees from lower Cash Market turnover.