Cash Transaction

Cash Transaction - A cash transaction is a transaction that is directly involved in the immediate exchange of cash for an asset such as shares, stocks, bonds, preferred stocks, common stocks or other financial securities. This cash transaction is the exact opposite of a futures contract, which generally involves the exchanges of some type of asset, financial securities, later, and through a set price. A futures contract requires a transferable exchange-trade contract for the delivery of a commodity at a specific price on a specific day, with no three-day grace period, and with the understanding that dollars gained or lost are equal, but opposite in these transactions.