The actual amount of money that is exchanged when commodities are bought and sold. The cash price usually will include all transaction, carry and transportation costs. Investors looking to benefit from changes in commodity prices can invest in commodity futures, which are anticipated cash prices. Changes in futures trading volume affect the volatility of cash prices.
The cash price is not the same as the futures price. The cash price is the amount paid for commodities on the spot market, where large manufacturers commonly purchase the commodities they need. Commodities are physical products that are generally indistinguishable no matter which company brings them to the marketplace. Examples include corn, crude oil, gasoline, gold, cotton, beef and sugar.
Investment dictionary. Academic. 2012.
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cash price — The cost of a good or service when purchased for cash. In commodity trading, the cash price is the cost of buying the physical commodity on the current day in the spot market, rather than buying contracts in the futures market. The CENTER ONLINE… … Financial and business terms
Cash price — A price quotation obtained or a price actually received in a cash market … International financial encyclopaedia
cash price — The price at which a seller is prepared to sell goods provided that payment is received immediately in cash, i. e. no credit or commission to a credit card company has to be given. This is invariably below the price that includes a hire purchase… … Big dictionary of business and management
cash price — lower price which is given for paying cash (instead of check or credit card) … English contemporary dictionary
cash price — / kæʃ praɪs/ noun a lower price or better terms which apply if the customer pays cash … Dictionary of banking and finance
cash price — A price payable in cash at the time of sale of property, in opposition to a barter or a sale on credit … Black's law dictionary
cash price — noun the current delivery price of a commodity traded in the spot market • Syn: ↑spot price • Hypernyms: ↑price, ↑terms, ↑damage … Useful english dictionary
cash price — Tradúzcase por precio al contado … Diccionario español de neologismos
price — A fixed value of something. Prices are usually expressed in monetary terms. In a free market, prices are set as a result of the interaction of supply and demand in a market; when demand for a product increases and supply remains constant, the… … Financial and business terms
cash and carry trade — See basis trading LIFFE * * * An arbitrage position that typically comprises a long cash position together with a short position in its respective futures contract. The trader buys the cash (or physical) commodity, such as coffee, and at the… … Financial and business terms