Word: Cash Price
Definition:
The term "cash price" refers to the current price at which a commodity (like grain, oil, or metals) can be bought or sold for immediate delivery. This means that the buyer pays cash right away and receives the product immediately, rather than agreeing to pay later or receiving the product at a future date.
Usage Instructions:
- "Cash price" is often used in financial contexts, particularly in trading and commodity markets. - It is important to note that "cash price" is different from prices for future delivery, which may be agreed upon today but paid for later.
Example Sentence:
- "The cash price for wheat has increased due to poor harvest this season."
Advanced Usage:
In financial discussions, "cash price" might be compared to "futures price." While the cash price reflects current market conditions, the futures price involves a contract for delivery at a later date, which may depend on predictions about market changes.
Word Variants:
- Cash Pricing (noun): The method of pricing goods based on cash payments. - Cash Market (noun): A market where commodities are bought and sold for immediate delivery and payment.
Different Meanings:
In general usage, "cash price" can simply refer to the price of something when paying in cash, as opposed to using credit or financing options.
Synonyms:
- Spot price (in commodity markets) - Immediate price
Idioms and Phrasal Verbs:
While "cash price" itself does not have specific idioms or phrasal verbs associated with it, you might hear phrases like: - "Pay cash on the spot" – which means to pay immediately without delay.
Summary:
"Cash price" is a term used mostly in finance to describe the price for a commodity that can be paid in cash and delivered immediately.