Cash Commodity

A cash commodity refers to physical goods such as metals, grains, or other tangible products, traded and delivered, often after exercising futures or options contracts. These goods are also called “actuals” and are commonly delivered for payment in futures trading.

Related Terms

Capital Losses

Capital Loss is the loss that occurs when an investor sells a capital asset for less than its purchase price. This includes stocks, real estate, and other investments. Capital losses can offset capital gains, thereby reducing overall taxable income for the investor.

Capital Gains Distribution

Capital Gains Distribution refers to payments made by mutual funds or exchange-traded funds (ETFs) to investors, representing a portion of the proceeds from the fund’s sales of stocks and assets within its portfolio. It reflects the investor’s share of the fund’s capital gains.

Capital Gain or Loss

Capital gain is the profit earned from selling an asset, while capital loss is the loss incurred from selling an asset. Gains can be realized (after sale) or unrealized (before sale). Capital gains are taxable, and losses may offset gains for tax purposes.

Cash Contract 

A cash contract is an agreement between two parties for the delivery of goods at a predetermined price and date. Unlike futures contracts, it involves physical delivery. It’s commonly used by large companies for securing commodities without engaging in speculation.

Cash Flow 

Cash flow refers to the net amount of money moving in and out of a business or individual’s finances. Positive cash flow indicates more income than expenses, while negative cash flow signals higher expenses. It’s crucial for assessing liquidity and overall financial health.

Cash Market

A cash market, also known as a spot market, is where assets, goods, or securities are bought and sold with immediate settlement at the spot price. Stock exchanges like NSE and BSE are examples of cash markets, unlike futures markets where settlement occurs later.

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