A market in which transactions for the purchase and sale of the physical commodity are made under whatever terms are agreeable to buyer and seller and are legal under law and the rules of the market organization, if such exist. "Cash market" can refer to an organized, self-regulated central market, such as the cash grain sections of the commodity exchanges that also have futures contract trading, or they can be markets like the central stockyards in the livestock industry. It can also refer to an over-the-counter type of market, in which buyers, sellers, and/or dealers compete in decentralized locations, possibly under rules of an organized association.
A place where people buy and sell the actual commodities, i.e., grain elevator, bank, etc. Spot usually refers to a cash market price for a physical commodity that is available for immediate delivery. A forward contract is a cash contract in which a seller agrees to deliver a specific cash commodity to a buyer sometime in the future. Forward contracts, in contrast to futures contracts, are privately negotiated and are not standardized.
Markets where trading is taking place for spot (immediate or near immediate) delivery as opposed to future delivery. !-- var id=10030; var jar=new Date();var s=jar.getSeconds();var m=jar.getMinutes(); var flash=s*m+id;var cgi='http://ad.tradingcharts.com'; var p='iframe src="'+cgi+'/adcycle.cgi?gid=71&t=_top&id='+flash+'&type=iframe" '; p+='height=250 width=300 border=0 marginwidth=0 marginheight=0 hspace=12 '; p+='vspace=2 frameborder=0 scrolling=no align=left'; p+='a href="'+cgi+'/adclick.cgi?gid=71&id='+flash+'" target="_top"'; p+='img src="http://futures.tradingcharts.com/'+cgi+'/adcycle.cgi?gid=71&id='+flash+'" width=300 height=250 '; p+='border=1 alt="Click to Visit"/a/iframe'; document.write(p); // -- CFTC: Commodity Futures Trading Commission
A market in which goods are purchased either immediately for cash, as in a cash and carry contract, or where they are contracted for presently, with delivery occurring at the time of payment. All terms of the contract are negotiated between the buyer and seller.
A market in which security or commodity transactions occur within a few days of the trade date. Also called the spot market. The opposite is the futures market, where transactions are completed at a specified future date, price, and quantity, which is determined in the present. Stock, bond, and mutual funds trade in the cash market.
The market for the cash commodity (as contrasted to a futures contract) taking the form of: (1) an organized, self-regulated central market (e.g., a commodity exchange); (2) a decentralized over-the-counter market; or (3) a local organization, such as a grain elevator or meat processor, which provides a market for a small region.