Cash Price


DEFINITION of 'Cash Price'

The actual amount of money that is exchanged when commodities are bought and sold. The cash price usually will include all transaction, carry and transportation costs. Investors looking to benefit from changes in commodity prices can invest in commodity futures, which are anticipated cash prices. Changes in futures trading volume affect the volatility of cash prices.


The cash price is not the same as the futures price. The cash price is the amount paid for commodities on the spot market, where large manufacturers commonly purchase the commodities they need. Commodities are physical products that are generally indistinguishable no matter which company brings them to the marketplace. Examples include corn, crude oil, gasoline, gold, cotton, beef and sugar.

  1. Actuals

    The physical commodity that underlies a futures contract or is ...
  2. Cash Market

    The marketplace for immediate settlement of transactions involving ...
  3. Carrying Charge Market

    A futures market where contracts with maturities further into ...
  4. Carrying Charge

    Cost associated with storing a physical commodity or holding ...
  5. Futures Contract

    A contractual agreement, generally made on the trading floor ...
  6. Cash Commodity

    In futures trading, the cash commodity is delivered for payments. ...
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  1. Do hedge funds invest in commodities?

    There are several hedge funds that invest in commodities. Many hedge funds have broad macroeconomic strategies and invest ... Read Full Answer >>
  2. Can mutual funds invest in options and futures?

    Mutual funds invest in not only stocks and fixed-income securities but also options and futures. There exists a separate ... Read Full Answer >>
  3. Can mutual funds invest in commodities?

    Mutual funds can invest in commodities. In fact, mutual funds may provide a better way for investors to gain exposure to ... Read Full Answer >>
  4. How do futures contracts roll over?

    Traders roll over futures contracts to switch from the front month contract that is close to expiration to another contract ... Read Full Answer >>
  5. Why do companies enter into futures contracts?

    Different types of companies may enter into futures contracts for different purposes. The most common reason is to hedge ... Read Full Answer >>
  6. What does a futures contract cost?

    The value of a futures contract is derived from the cash value of the underlying asset. While a futures contract may have ... Read Full Answer >>

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