Cash Transaction

AAA

DEFINITION of 'Cash Transaction'

A transaction that is settled with cash on the same day as the trade.

INVESTOPEDIA EXPLAINS 'Cash Transaction'

Settling a trade using the cash transaction method differs from settling a contract on the settlement date, which in some cases involves agreeing on a price on the trade date but transferring payment on some date in the future (known as the settlement date). A cash transaction requires all aspects of a trade including delivery of payment to be finalized on the trade date.

RELATED TERMS
  1. Contract For Differences - CFD

    An arrangement made in a futures contract whereby differences ...
  2. Trade Date

    The month, day and year that an order is executed in the market. ...
  3. Settlement Date

    1. The date by which an executed security trade must be settled. ...
  4. Cash Trigger

    A condition that triggers an investor to make a trade or take ...
  5. Bill Of Sale

    A document that details in writing a sale of goods or transfer ...
  6. Discretionary Investment Management

    A form of investment management in which buy and sell decisions ...
Related Articles
  1. Business Owners: Rules For Qualified ...
    Entrepreneurship

    Business Owners: Rules For Qualified ...

  2. Principal Trading and Agency Trading
    Investing Basics

    Principal Trading and Agency Trading

  3. Dynamic Current Ratio: What It Is And ...
    Fundamental Analysis

    Dynamic Current Ratio: What It Is And ...

  4. What Is A Cash Flow Statement?
    Markets

    What Is A Cash Flow Statement?

Hot Definitions
  1. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  2. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  3. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  4. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  5. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
  6. Earnings Multiplier

    An adjustment made to a company's P/E ratio that takes into account current interest rates. The earnings multiplier is used ...
Trading Center