Cash Market

  

Categories: Banking, Bonds, Investing

Randy Moss is one of the greatest wide receivers of all time. And Randy Moss will never be seen at any futures market anywhere in the world. That’s because if Randy Moss wants something, he prefers one means of settlement.

“Straight cash, homey.”

The cash market is the opposite of a futures market. Transactions between buyers and sellers are completed immediately, in real time at the cash or “spot” price.

The general perception of a public cash market is always centered on the commodities markets. People have images of buyers and sellers exchanging agricultural commodities in Chicago. The reality is that the largest cash market in the world is the New York Stock Exchange, since equities are bought and settled two days after the day of the trade’s execution.

Now, go deep.

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