Encyclopedia > Underlying instrument

  Article Content

Underlying instrument

The underlying instrument is the financial instrument upon which a derivative security's price is based.

In the financial world, it is possible to trade in one financial instrument whose value is defined in terms of the price of some other financial instrument (the 'underlying' instrument).

Stock options are a common example.

All Wikipedia text is available under the terms of the GNU Free Documentation License

  Search Encyclopedia

Search over one million articles, find something about almost anything!
  Featured Article
Kuru Kuru Kururin

... all the time, making the task difficult. The player controls the direction and speed of movement (it's a 3-speed stick). Gameplay is very challenging and rewarding, and once ...

This page was created in 65.4 ms