Underlying Asset – Definition

An underlying asset is the financial asset upon which a derivative’s price is based.

Often stocks, bonds, commodities, currencies, interest rates and market indexes are considered as underlying assets.

Author: Vikas Yadav

Vikas Yadav is the chief author at MonetarySection. He is an MBA (finance) from NCU Gurgaon. He started his career in 2014 and at the same time he started this website to educate people about finance.

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