The cash market, also known as the spot market, is a financial market where financial instruments such as currencies, commodities, and securities are traded for immediate delivery or settlement. In the forex market, the cash market refers to the spot forex market where currencies are bought and sold for immediate delivery.
In the cash market, trades are settled immediately after the transaction, usually within two business days. This is in contrast to the futures market, where trades are settled on a future date, typically several months in advance.
The cash market is an important component of the global financial system, as it provides a platform for individuals and institutions to exchange financial instruments for immediate delivery. The prices in the cash market are determined by the forces of supply and demand, and reflect the current market sentiment towards the financial instrument being traded.