Cash Market
Definition of Cash Market
A stock market exchange like NSE or BSE is an example of a cash market as trades are settled on the spot at the spot price. Derivatives like futures are not a part of the cash market are trades are settled in the future.
Related Terms
Zero-Coupon Bond
Block Trade
Shares change hands between companies after the price of the security is privately negotiated. Most block trades are routed through investment banks and executed outside the conventional market.
Delivery Notice
Bullion
At The Money
Exercising an option At The Money can lead to a loss as the premium paid for the contract won’t be recovered.
That said, At The Money is known to be a positive indicator as it indicates the option may soon have intrinsic value.
Forex Futures Trading
- Forex pair: the currency you will buy in exchange of the other at the end of the futures contract
- Lot size: the value of the currency included in the contract
- Contract price: the price at which the futures contract is trading
- Spot price: the latest forex rate for the currency pair, different from the contract price
- Margin: the amount of money you’re required to deposit with your currency trading platform
- Tick size: the minimum amount by which a forex futures contract can move, which is Rs. 0.0025 in India
- Expiration date: the preagreed day on which the contract must be excercised or squared off

