Cash price refers to the current market price of a commodity, security, or financial instrument for immediate delivery in the spot market. Also known as the spot price, it represents the actual market value at which an asset can be bought or sold for prompt delivery and payment. Cash prices fluctuate continuously based on supply and demand conditions, market sentiment, and other fundamental factors.

The cash price serves as the benchmark for pricing related derivative instruments such as futures contracts, options, and swaps. The relationship between cash prices and futures prices creates arbitrage opportunities and helps maintain market efficiency. Cash prices are particularly important in commodity markets where physical delivery is involved and in forex markets for immediate currency exchange.

Real-world example: The cash price for WTI crude oil is $75 per barrel for immediate delivery, while the three-month futures contract trades at $77 per barrel, reflecting storage costs and market expectations.