Cash Commodity
A cash commodity, also called an 'actual,' is a tangible goods—such as aluminum, cotton, gold, or silver—delivered to a trader or company, typically after exercising derivatives like options or futures. These contracts specify delivery date, price, and quantity, ensuring clarity since not all derivatives result in physical delivery. This process is vital in markets where traders or firms secure real goods for use or resale, tying financial instruments to concrete economic activity.
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