Actuals
Definition of 'Actuals'The physical commodity that underlies a futures contract or is traded in the physical market. This is the homogeneous commodity that is the basis for trade, either through the physical market or a derivative contract such as oil, corn or gold. |
|
Investopedia explains 'Actuals'Actuals are traded in either the physical market or the futures market. In the physical market, two parties enter into a private agreement to exchange the commodity for cash or another commodity, and delivery almost always occurs. In the futures market, two parties enter into an exchange-traded contract in which one party agrees to deliver a set quantity and quality of the underlying commodity while the other party agrees to purchase the commodity. In this case, delivery is not certain and parties can sell their positions before delivery. |
Related Definitions
Articles Of Interest
-
Grow Your Finances In The Grain Markets
Hedging with futures can protect those who buy and sell commodities from adverse price movements. -
Trading The Soft Commodity Markets
Learn the contract specifications for a few of the most heavily traded commodities. -
Futures Fundamentals
For those who are new to futures but want a solid understanding of them, this tutorial explains what futures contracts are, how they work and why investors use them. -
Making It Big On Wall Street
Read about some of the most glamorous Wall Street jobs and what it takes to land one. -
Quants: The Rocket Scientists Of Wall Street
Blend math, finance and computer skills to command a high - and well deserved - salary. -
Uncovering Oil And Gas Futures
Find out how to stay on top of data reports that could cause volatility in oil and gas markets. -
Trading Is Timing
Learn how to make gains even if you don't get in at the right time. -
Build A Baby Berkshire
Get a piece of Warren Buffett's profit by using Form 13F to coattail his picks. -
Leading Economic Indicators Predict Market Trends
Leading indicators help investors to predict and react to where the market is headed. -
Cash: A Call Option With No Expiration Date
Cash is generally regarded as a drag on investment returns, but sometimes it may be preferable to hold a substantial cash amount instead of investing it in other assets. This is because having ...
Free Annual Reports