What is an Actual Market?
While there are a number of markets that are used for trading stocks, the actual market is concerned with the buying and selling of commodities. Commodities are simply tangible goods, and may involve such diverse types of products as crude oil and related products, computer supplies such as memory chips, or basic foods such as grains, sugars, or produce. What is a little different about actual markets is that the goods are bought and sold on a cash basis only. Here are some of the basics of dealing within an actual market, as well as a couple of advantages. Sometimes referred to as a cash market or a spot market, the concept behind the actual market is very simple. A seller has goods to sell for cash, and seeks a buyer who has cash. The exchange is quick and easy, not unlike going into a store and purchasing an item for cash. There are no lengthy processes to go through, no financing to arrange, and no delay while funds are obtained and transferred. The buyer delivers the agreed upon a