Business Glossary

any physical commodity, such as gold, soybeans, or pork bellies. Trading in actuals ultimately results in delivery of the commodity to the buyer when the contract expires. This contrasts with trading in commodities of, for example, index options, where the contract is settled in cash, and no physical commodity is delivered upon expiration. However, even when trading is in actuals most futures and options contracts are closed out before the contract expires, and so these transactions do not end in delivery.

any physical commodity or financial instrument (Treasury bills, bonds, currencies) sold at the spot rate at the expiration of a contract. In a financial future it is the commodity underlying the futures contract as distinguished from the futures contract itself. In the futures market, delivery of the physical commodity or financial instrument rarely occurs, as most traders close out their forward positions before a contract expires.