What is the meaning of Underlying?

Underlying is the actual or physical security, commodity, futures, index or basket underlying a derivative product. It is the benchmark for pricing and evaluation purposes.

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APABarry Goldsmith. (2010). underlying. Retrieved September 22, 2026, from http://smartdefine.org/underlying/definitions/1165823
ChicagoBarry Goldsmith. 2010. "underlying" http://smartdefine.org/underlying/definitions/1165823 (accessed September 22, 2026).
HarvardBarry Goldsmith 2010, underlying, Smart Define, viewed 22 September, 2026, <http://smartdefine.org/underlying/definitions/1165823>.
MLABarry Goldsmith. "underlying" 21 October 2010. Web. 22 September 2026. <http://smartdefine.org/underlying/definitions/1165823>
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