Cash Trading

Cash Trading
A method of buying or selling securities by providing the capital needed to fund the transaction without relying on the use of margin. Cash trading is achieved by using a cash account, which is a type of brokerage account that requires the investor to pay for securities within two days from when the purchase is made.

Cash trading is unlike margin trading because the account holder cannot borrow money from the broker to fund the transaction. Cash trading involves less risk than margin trading, because risk is limited to only the cash invested.


Investment dictionary. . 2012.

Игры ⚽ Поможем сделать НИР

Look at other dictionaries:

  • cash trading — Trading method used on Euronext markets that consists in paying for purchases and sales immediately after a trade. NYSE Euronext Glossary …   Financial and business terms

  • Trading stamp — Trading stamps are small paper coupons given to customers by merchants. These stamps have no value individually, but when a customer saves up a certain number of them, they can be exchanged with the trading stamp company for other merchandise.… …   Wikipedia

  • cash — ► NOUN 1) money in coins or notes. 2) money as an available resource: he was always short of cash. ► VERB 1) give or obtain notes or coins for (a cheque or money order). 2) (cash in) convert (an insurance policy, savings account, etc.) into money …   English terms dictionary

  • Cash (mass) — Cash (Traditional Chinese: 釐 or 厘, Simplified Chinese: 厘) is the English name for the Chinese unit of weight Li. Terminology Li is the general name used by Chinese. Cash or Le have also been documented to be used by English explorers in the 1830s …   Wikipedia

  • cash and carry — ► NOUN ▪ a system of wholesale trading whereby goods are paid for in full and taken away by the purchaser …   English terms dictionary

  • Trading Below Cash — When a company s total share value is less than its cash minus debts. Trading below cash occurs when the market capitalization is less than the amount of actual cash a company has on hand. Trading below cash often occurs when growth prospects are …   Investment dictionary

  • trading — (1) The activity of buying and selling financial instruments or commodities for profit. Individuals or entities may engage in trading either strictly on their own behalf or for current or future transactions with customers. Trading profits may… …   Financial and business terms

  • Trading Account — 1. An account similar to a traditional bank account, holding cash and securities, and is administered by an investment dealer. 2. An account held at a financial institution and administered by an investment dealer that the account holder uses to… …   Investment dictionary

  • cash settlement — Instead of having the actuals delivered, cash is transferred upon settlement. The CENTER ONLINE Futures Glossary The agreement of a buyer and seller to exchange the security and the payment on the same day as the trade. For money market… …   Financial and business terms

  • cash — cash1 noun money in coins or notes. ↘money in any form as an available resource. verb 1》 give or obtain notes or coins for (a cheque or money order). 2》 (cash something in or N. Amer. cash out) convert an insurance policy, savings account, etc.… …   English new terms dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”