Cash Market

This Issue in United States

Concept of Cash Market in Futures Trading

In this context of financial law, the following is a definition of Cash Market: The market for the cash commodity (as contrasted to a futures contract) taking the form of: (a) an organized, self-regulated central market (e.g., a commodity exchange); (b) a decentralized over-the-counter market; or (c) a local organization, such as a grain elevator or meat processor, which provides a market for a small region.

Cash Market

Concept of Cash Market in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The market where the physical (non derivative) asset trades. For example, foreign exchange, bonds or equities.

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See Also

• Derivatives Contract