Cash markets can operate on a regulated exchange or over-the-counter (OTC) (over-the-counter). OTC markets frequently operate around the clock and provide greater flexibility. In the meantime, futures trading takes place on regulated exchanges.

Another significant distinction is the settlement date. Cash trades are typically settled 2-3 days after the transaction date, whereas futures contracts have a pre-determined delivery date in the future, which could be in one, two, or three months.

The main difference when trading CFDs is the cost of holding the position overnight. Futures CFDs do not incur overnight swap charges, but they are subject to rollover charges when the underlying asset expires. There are no contract rollovers with cash CFDs, but an overnight swap fee is charged.

Short-term traders will generally prefer cash over futures due to lower spreads, whereas long-term traders may prefer futures CFDs instead because they are less sensitive to spreads but do not want to pay daily swap charges.

The cash and futures markets are two primary ways to trade financial instruments, differing in their nature and mechanisms:

Cash Market:
- Immediate Transactions: Trades are settled "on the spot," with immediate delivery of the asset.
- Ownership: Buyers gain direct ownership of the asset, like stocks, commodities, or currencies.
- Market Type: Used for short-term trading and actual exchange of goods and securities.

Futures Market:
- Contract-Based: Involves buying and selling contracts for future delivery of assets at predetermined prices.
- Leverage: Traders often use leverage, allowing control of large positions with smaller capital.
- Hedging and Speculation: Used to hedge against price movements or for speculation on future price changes.

Key Differences:
- Settlement: Immediate in the cash market, future-dated in the futures market.
- Ownership: Direct in the cash market, contractual in the futures market.