What is the Cash Market?

Cash Market Definition – The Cash Market, commonly referred to as the Spot Market, is a market in which transactions are promptly completed, that is, ownership of the commodity or currency is transferred from seller to buyer and payment is given on delivery of the commodity or currency. The cash market contrasts with the Futures Market, in which contracts are completed at a specified time in the future. In a Cash Market, buyers pay the market price for securities, currency, or commodities “on the spot,” just as you would pay cash for groceries, gasoline or other consumer products.

Risk Statement: Trading Foreign Exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you.