cash market
Quick Summary
The cash market is where goods are traded for immediate payment and delivery. This contrasts with futures markets, where contracts are made for the purchase or sale of commodities at a specified future date. In the cash market, the actual physical commodity is exchanged at the agreed-upon time. This market is distinct from the money market, which facilitates short-term lending and borrowing of funds, including assets convertible to cash like short-term government securities. Liquidity, the ease of converting assets to cash, is crucial in finance, with cash itself being the most liquid asset.123
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