cash market


Also found in: Dictionary, Thesaurus.
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 ?
If we borrow shares in the cash market and sell them and simultaneously buy the futures contract, it will entail a profit of ` 2,000 [ 100 x ( 200- 180)].
If we borrow shares in the cash market and sell them, and simultaneously buy the futures contract, it will entail a profit of Rs 2,000 [100 x (200-180)].
For Quality Cash Market, the ounce of prevention was worth much, much more than a pound of cure," said Heath.
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 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.
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.
Deutsche Brse's cash markets record second highest trading volumes since 2012 / Four Deutsche Brse Venture Network start-ups have been listed on the stock exchange so far.
However, futures have taken a steep premium to the cash market and this may be seen as a limiting factor for a continued bounce.
Summary: A combination of derivative market tools like open interest and futures prices can help determine 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.
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.
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.