Against Actual

AAA

DEFINITION of 'Against Actual'

An order between two traders looking to hedge their positions, in which the traders swap futures positions in exchange for cash positions. Against actual transactions are recorded on commodity and futures exchanges, and are governed by the exchange's rules.

INVESTOPEDIA EXPLAINS 'Against Actual'

An "actual" is the underlying commodity in a futures contract, rather than the futures contract itself. In an against actual trade, a seller may offer cash to futures contract buyers, rather than have to physically deliver the underlying commodity. For investors in futures contracts, high volume around actual futures trades might indicate that investors are incentivizing cash transactions to physical delivery.

RELATED TERMS
  1. Physical Delivery

    Term in an options or futures contract which requires the actual ...
  2. Cash

    Legal tender or coins that can be used in exchange goods, debt, ...
  3. Chicago Board Options Exchange ...

    Founded in 1973, the CBOE is an exchange that focuses on options ...
  4. Commodity

    1. A basic good used in commerce that is interchangeable with ...
  5. Hedge

    Making an investment to reduce the risk of adverse price movements ...
  6. Futures

    A financial contract obligating the buyer to purchase an asset ...
Related Articles
  1. Active Trading

    Top 4 Mistakes That Cause Futures Traders To Fail

    Learn to keep your losses to a minimum and consistently produce positive results.
  2. Options & Futures

    Options On Futures: A World Of Potential Profit

    There's one simple hurdle in the transition from stock to futures options: learning about product specifications.
  3. Forex Education

    What Is Your Risk Tolerance?

    Learn your risk tolerance and understand the factors to consider when creating your investment portfolio.
  4. Investing Basics

    The Strange New World Of The Bitcoin Exchange Futures Market

    We explain the basics of the Bitcoin exchange and futures market.
  5. Economics

    Which country has the most gold?

    Learn which countries hold the most in gold reserves, and explore the reasons holding gold may be beneficial to a country's economy.
  6. Chart Advisor

    Commodities Are Pulling Chile And Brazil Lower

    Strategic investors should not only keep an eye on charts of falling commodity prices, but they should also watch the impact falling commodities are having on South American nations like Chile ...
  7. Options & Futures

    A Quick Guide for Futures Quotes

    Here is a quick guide to futures quotes.
  8. Chart Advisor

    As Oil Prices Drop, Traders Look To Lumber

    While much attention is being given to declining energy prices, it may prove strategic for active traders to shift their focus to sectors like lumber that are offering better risk/reward scenarios; ...
  9. Options & Futures

    Is short selling ethical?

    Understand the concept and practice of short selling, and examine the ethical questions that some investors raise in regard to this practice.
  10. Options & Futures

    How is it possible to trade on a stock you don't own, as is done in short selling?

    Understand how the process of short selling allows a person to sell a stock he or she doesn't technically own by borrowing on margin from a broker.

You May Also Like

Hot Definitions
  1. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  2. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  3. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  4. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
  5. Key Performance Indicators - KPI

    A set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their ...
  6. Bank Guarantee

    A guarantee from a lending institution ensuring that the liabilities of a debtor will be met. In other words, if the debtor ...
Trading Center