Glossary · PSX Mechanics
Cash Market
The segment of the PSX where shares are bought and settled within the standard settlement cycle. It is the most common form of equity trading for retail investors.
01—What is Cash Market?
The definition — and what it means in practice.
Cash Market (also called the Ready Market) is the main segment of the Pakistan Stock Exchange (PSX) where investors buy and sell listed shares for delivery and settlement within the standard settlement cycle. Trades are intended to result in actual transfer of shares and cash, rather than being purely derivative or future-dated positions. For most retail investors, this is the default way to trade ordinary shares.
It matters because settlement timing affects when you must have funds available, when shares appear in your account, and when you can safely re-sell or withdraw proceeds. Cash Market trading is also where most price discovery and liquidity sit for listed equities, so the bid–ask spread, order types, and daily price movement limits you see here directly shape your execution and short-term volatility experience.
If you buy 100 shares in the Cash (Ready) Market, you are making a normal delivery trade that settles in the standard cycle, not a futures-style position.
- Cash Market and Ready Market refer to the standard, delivery-based equity trading segment.
- Trades settle within the market’s standard settlement cycle, affecting cash and share availability.
- Most retail equity trading activity happens here, so liquidity and spreads are usually best here.
- Execution is driven by the order book (bids and offers), not negotiated off-market pricing.
- Daily price movement limits can affect fills and exit timing during volatile sessions.
02—How cash market works on the PSX
The Pakistan-specific rules, conventions, and numbers.
On the PSX, the Cash (Ready) Market is where typical investors place buy and sell orders in listed shares during the regular trading session. The PSX is regulated by the Securities and Exchange Commission of Pakistan (SECP). Trades clear through the National Clearing Company of Pakistan Limited (NCCPL), while share ownership is held electronically at the Central Depository Company (CDC).
Settlement on the PSX follows T+1 (one business day). In practical terms, that settlement cycle influences when your buy becomes fully delivered and when sale proceeds are finalised through clearing. To trade, each investor needs a Unique Investor Number (UIN), and brokers operate under a Trading Right Entitlement Certificate (TREC) licence. Many small investors use the Sahulat Account to get started.
Because most equities are traded in this segment, the Cash Market is where investors most often encounter PSX mechanics like the order book and daily price limits (circuit breakers). These limits are set around the previous close (LDCP) for most equities and can constrain how quickly a price can move in a day, which may affect order execution during fast markets.
03—Common misconceptions
Where investors most often get this wrong.
Cash Market means I must pay in physical cash immediately.
“Cash” refers to delivery-based trading with standard settlement, not paying banknotes on the spot. Settlement is handled through the clearing and depository system.
Ready Market is a different market from the Cash Market.
Ready Market is simply another name commonly used for the Cash Market segment where standard equity trades are executed and settled.
If my order executes, I can freely sell or withdraw proceeds right away.
Execution and final settlement are not the same. Availability to sell delivered shares or withdraw cleared funds depends on settlement completion and your broker’s processes.
04—Using cash market on BSL
Where this term shows up across the platform — with live data.
- Check listed shares you can trade in the Ready Market on Stocks.
- Filter names by liquidity and other metrics using the Stock Screener.
- Track current session activity and movers on Market.
- Learn related basics in the glossary at Glossary.
05—Frequently asked questions
What investors ask about cash market on the PSX.
Frequently Asked Questions
It is the main segment where PSX-listed shares are bought and sold for normal delivery and settlement within the standard settlement cycle. It is the most common way retail investors trade equities.
PSX settlement is T+1, meaning trades are settled one business day after the trade date. Clearing is done through NCCPL and shares are held electronically at the CDC.
No. Cash Market trades are delivery-based and settle within the standard cycle. Futures are derivative contracts with different mechanics and are not the same as buying and selling shares for delivery.
You need an investor account with a broker and a Unique Investor Number (UIN). Brokers must hold a TREC licence. Many small investors use the Sahulat Account as a simplified onboarding route.
Yes. For most equities, daily price limits apply around the previous close (LDCP). These limits can affect whether limit orders get filled and how quickly prices can move in a session.
06—Related terms
Keep building the picture.
The current standard settlement cycle on the PSX, where trades are finalised one business day after the transaction date. The shift from T+2 to T+1 was implemented to reduce counterparty risk and improve market efficiency.
The process of completing a trade by transferring shares to the buyer and cash to the seller. The PSX has moved toward a T+1 settlement cycle, meaning most trades are finalised one business day after the trade date.
A real-time electronic record of all buy and sell orders for a security on the exchange, showing prices and quantities at each level.
The highest price a buyer is willing to pay for a security. The gap between the bid and ask price is the spread and represents the cost of trading.
The lowest price a seller is willing to accept for a security. Also called the offer price. The difference between the ask and the bid price is called the spread.
A regulatory mechanism that temporarily halts trading in a security or the entire market when prices move beyond a defined threshold. On the PSX, individual stocks generally have upper and lower price limits of 10% or Re 1, whichever is higher, per session to prevent extreme volatility.
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