Posted in Finance, Accounting and Economics Terms, Total Reads: 398
Definition: Cash Price
Also known as spot price, it is the amount of money that exchanges hand when any actual or physical commodity is bought / sold. It includes all transaction, carry as well as transportation costs. It is different from futures price as it is the price paid for commodities in the spot market. Returns from commodity futures are anticipated cash prices. These commodities are highly homogenous with no product differentiation at all.