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underlying
(redirected from Underlying instrument)

   Also found in: Financial, Wikipedia 0.02 sec.
underlying adjective based on, basic, built on, deep-rooted, elemental, elementary, essential, latent, not evident, obscure, original, primal, primary, rudimentary, supporting, undermost, unseen
Associated concepts: underlying contract, underlying fact, underlying obligation
See also: basic, cardinal, central, essential, fundamental, initial, latent, organic, original, primary, rudimentary, substantive, virtual


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? Mentioned in ? References in periodicals archive
 
Used either for hedging or trading purposes, derivative instruments simply allowed counterparties to realize the performance of some underlying price (interest rate or currency exchange rate), without having to hold a position in the underlying instrument, per se.
The amounts should retain the same character as the underlying instrument.
One feature of duration is that, other things equal, it is positively related to the maturity of the underlying instrument.
 
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