What does Cash Market mean?
A market where the securities or commodities are traded for immediate settlement and delivery. Since the transactions are settled at the same time, cash market is also known as “spot market.” It is a market where actual products, instead of futures contracts or options, are sold and delivered.
Futures Knowledge Explains Cash Market
In a cash market, the exchange of goods and money between the seller and the buyer takes place "on the spot”, as opposed to the futures market where such an exchange takes place on a specified future date. In spot market, settlement happens in t+2 working days, i.e., delivery of cash and commodity must be done after two working days of the trade date.
Cash market transactions can take place either on a regulated exchange or over-the-counter (OTC).