Underlying(redirected from Underlying instruments)
Also found in: Dictionary, Thesaurus, Legal.
Related to Underlying instruments: Underlying asset
A security, commodity, or other asset described in a derivative contact. For example, in an option contract giving the holder the right to buy so many shares of AT&T, the underlying instrument is stock in AT&T. Likewise, in a futures contract on so many barrels of refined oil, the underlying instrument is refined oil.