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. Cash Contract

    A financial arrangement that requires delivery of a particular ...
  2. Last Trading Day

    The last trading day is the final day that a futures contract ...
  3. Short The Basis

    A futures strategy involving the purchase of a futures position ...
  4. Commodity Trader

    A commodity trader focuses on investing in physical substances ...
  5. Spot Commodity

    A commodity traded on the spot market. That is, with the expectation ...
  6. Delivery Date

    The delivery date is the final date the underlying commodity ...
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