Glossary › underlying
Trading glossary · markets
underlying
The real thing, like a share or gold, that a trading contract is based on and gets its price from.
The fuller meaning
The asset, index or rate from which a derivative takes its value, such as the stock behind an option or the index behind an index future. Contract specifications state the underlying, contract size, tick size and value, margin, expiry and settlement type.
underlying.
Related words
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