Against Actual


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.

BREAKING DOWN '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.

  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 ...
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