Posted in Finance, Accounting and Economics Terms, Total Reads: 269
Actuals is defined as real products or commodities or financial instruments which are traded between a buyer and a seller. Two individuals or parties want to enter into an agreement to buy or sell a commodity in exchange for another commodity or through cash or cash equivalents in a physical market, they enter into a trading contract which may be a futures contract or a physical commodity called actuals.
As in the case of the futures contract signed between two entities, one party promises to deliver the set of goods or commodities in a particular duration of time while the other party agrees to buy the commodity. In the case, however, there is no obligation for the two parties and they may trade their commodities before the actual delivery date.
For example, a farmer wants to sell his produce at a certain market price or at the exchange of a particular commodity he can enter into an actuals contract.