A simplified view is that the futures market is comprised of two groups: speculators and hedgers. Speculators are looking to make profits by betting on price changes and have no interest in taking possession of the underlying commodities. Hedgers are firms which either produce or require the underlying commodity. They are often interested in taking or making physical delivery of the underlying commodity, at a specified price. For example, an airline may hedge its operating costs by using a futures contract to lock in the price on future delivery of jet fuel.
Investment dictionary. Academic. 2012.
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cash commodity — An actual physical commodity someone is buying or selling, e.g., soybeans, corn, gold, silver, Treasury bonds, etc. Also referred to as actuals. Chicago Board of Trade glossary The actual or physical commodity. The market in which the physical… … Financial and business terms
Cash commodity — The actual physical commodity, as distinguished from a futures contract. The New York Times Financial Glossary * * * A physical commodity, such as bags of coffee or bushels of wheat, as distinct to a commodity derivative, such as a future or… … Financial and business terms
Cash commodity — The actual commodity or financial instrument as opposed to a futures contract based upon the commodity or instrument. See also Basis … International financial encyclopaedia
cash market — 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… … Financial and business terms
cash-and-carry — An arbitrage transaction involving the simultaneous purchase of a cash commodity with borrowed money and the sale of the appropriate futures contract. Exchange Handbook Glossary * * * Ⅰ. cash and carry UK US (plural cash and carrys) (also cash… … Financial and business terms
cash and carry — An arbitrage transaction involving the simultaneous purchase of a cash commodity with borrowed money and the sale of the appropriate futures contract. Exchange Handbook Glossary * * * cash and carry ˌcash and ˈcarry noun cash and carrys… … Financial and business terms
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