Cash Delivery

1. The same-day settlement of a currency trade in the forex market. This means that delivery and settlement of the transaction occur on the same date that the currency trade is made. In order for this to occur, the forex position must be opened and closed within the same trading day.

Also referred to as "same-day settlement".

2. In the context of futures contracts, a settlement term in a contract that stipulates that the underlying asset of the contract will not be delivered on the delivery date - rather, the net cash value of the position will be transferred to the applicable party instead.

1. As is the case with most financial markets, when you place an order in the forex market, the trade is executed shortly afterward, but the settlement of trades - during which the trade details are entered into the books and records of the trading parties - typically occurs at a later time. Cash delivery is exceptional, because all of this happens in the same day.

2. Rather than physically deliver the underlying commodity or asset to the contract holder, it is much easier to simply transact the net cash value of the futures position instead. This allows investors to hedge against price changes in the underlying asset without having to worry about physically taking delivery.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Cash delivery — The provision of some futures contracts that requires not delivery of underlying assets but settlement according to the cash value of the asset. The New York Times Financial Glossary …   Financial and business terms

  • cash delivery — The provision of some futures contracts that requires not delivery of underlying assets but settlement according to the cash value of the asset. Bloomberg Financial Dictionary …   Financial and business terms

  • cash delivery automaton — pinigų išdavimo automatas statusas T sritis automatika atitikmenys: angl. cash delivery automaton vok. Geldausgabeautomat, m; Schaltermaschine, f rus. автомат выдачи денег, m pranc. distributeur automatique de billets de banque, m …   Automatikos terminų žodynas

  • cash before delivery — ˌcash before deˈlivery abbreviation CBD noun [uncountable] COMMERCE TRANSPORT when a buyer must pay for goods before they are sent to them * * * cash before delivery UK US noun [U] (ABBREVIATION …   Financial and business terms

  • delivery versus payment — delivery vs. payment ( DVP) The simultaneous exchange of securities and cash. The safest method of settling either the purchase or sale of a security. In a DVP settlement, the funds are wired from the buyer s account and the security is delivered …   Financial and business terms

  • cash — n 1: ready money 2: money or its equivalent (as a check) paid for goods or services at the time of purchase or delivery cash against documents: a sight draft in exchange for a bill of lading agree that the buyer will pay cash against documents… …   Law dictionary

  • cash settlement — A financial instrument is cash settled if the underlying asset is not delivered or transferred to the counterparty in exchange for a specified payment when the instrument reaches maturity. Instead, the owner of the financial instrument accepts an …   Law dictionary

  • cash before delivery — cash be|fore de|li|ve|ry 〈[kæ̣ʃ bıfɔ:r dılı̣vərı] Wirtsch.〉 Vertriebsform des Handels, bei der der Kaufpreis für eine Ware vor ihrer Übergabe zu bezahlen ist [engl., „Bezahlung vor Lieferung“] * * * cash before delivery   [ kæʃbɪ fɔː dɪ lɪvərɪ,… …   Universal-Lexikon

  • cash on delivery — n. 1. cash payment when a purchase or shipment is delivered 2. with cash paid at time of delivery * * * …   Universalium

  • cash on delivery — n. 1. cash payment when a purchase or shipment is delivered 2. with cash paid at time of delivery …   English World dictionary

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