Filter by Categories
Accounting
Banking

Exchanges




Cash Market


A market in which cash-like securities and other similar instruments/ products are traded and exchanged. A cash market is also defined as a marketplace where prices for commodities or securities are paid for and received at the time of the transaction (i.e., immediately settled)- immediate delivery and payment.

In yet another context, a cash market is where actual assets (e.g., commodities) are traded, rather than through other instruments (such as derivatives).

In the context of banking, a cash market refers to a market place for unsecured, overnight loans between banks (interbank overnight loans). By averaging interest rates on such loans, a cash rate can be determined.

It is also known as a spot market.



ABC
This section covers a wide-ranging array of terms and concepts, among others, in the area of exchanges and financial marekts at large ...
Watch on Youtube
Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments


    Leave Your Comment

    Your email address will not be published.*