We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What are Actuals?

Malcolm Tatum
By
Updated May 16, 2024
Our promise to you
SmartCapitalMind is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At SmartCapitalMind, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

Also known as cash commodities, "actuals" are physical commodities that are delivered once a contract is completed. This makes the commodity different from a futures contract, in that actuals are the commodity that serves as the underlying asset for a futures contract. The terms of that contract will determine the number of units that must be delivered at the maturity date named in the terms.

While it can be somewhat confusing for investors who are just beginning to dabble in commodity trading, it sometimes helps to think of actuals as being the real or actual goods that are being traded using the futures contract as the means for managing the trade. This includes the quantities of the commodity that must be delivered to the trader at a specified point in the future. For example, if the investor enters into a futures contract that calls for delivery of gasoline on a specific date in August, the seller must deliver the specific or actual quantity of gasoline specified in the contract by that date, charging the price per unit identified in the terms of the futures contract. The gasoline that is actually delivered on that date in August constitutes the actuals that are identified in the contract terms.

The concept of actuals is important to this type of investment, in that the investor not only locks in what is ideally a great price for the commodities, but also a quantity of goods that can be sold at a profit once they are in hand. It is not usual for investors to arrange to sell their actuals just prior to the completion of the futures contract, typically for a price per unit that is higher than the price paid for acquisition of the goods.

Actuals usually represent some type of physical commodity, although there are those who believe the term can also be applied to cash commodities. When the futures deal is crafted properly, and the investor has reason to believe that the value of those underlying commodities will exceed the purchase price named in the contract, this approach can be extremely profitable. At the same time, the original seller normally locks in a price for the actuals that at least cover his or her original investment in the commodities and allows for some type of profit from the venture. Under the best of circumstances, both parties involved in that futures contract benefit from the arrangement.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Malcolm Tatum
By Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing to become a full-time freelance writer. He has contributed articles to a variety of print and online publications, including SmartCapitalMind, and his work has also been featured in poetry collections, devotional anthologies, and newspapers. When not writing, Malcolm enjoys collecting vinyl records, following minor league baseball, and cycling.
Discussion Comments
Malcolm Tatum
Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing...
Learn more
SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.