underlyinggerund / present participle Used adjectivally as the present participle of the verb 'underlie'.
Definitions
Present participle of “underlie”, used attributively to modify a noun. The risks underlying the strategy were underestimated.
Specialised financial term meaning the asset or instrument on which a derivative is based.
Definitions
An asset, rate, or instrument upon which a derivative or other financial product is based. The option is priced relative to its underlying.
Synonyms
underlying asset
underlying security
underlying instrument
root cause