Cash Transaction

An immediate payment of cash for the purchase of a security, product, or service (whatever it is, we’re not here to judge). But don’t use your credit card, because that’s not cash...it’s plastic, and you’re not immediately paying for anything.

Neither are futures contracts or forward contracts, where funds are delivered at a future date for the immediate purchase of a security. Margin purchases won’t fly either, because you're borrowing against your existing assets to purchase another security. Neither will borrowing from Peter to pay Paul. But you can borrow from your mom, or use your debit card for a cash transaction, because that comes directly from your cash banking account...unless, of course, your balance is an abysmal $2.00.