# Underlying also referred to as reference base and underlying (underlying (asset), reference base; stock)

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- Modified: 2023-07-25T21:12:41+00:00
- Language: en

## Definition

The underlying asset of a forward transaction (derivative). These are primarily equities, interest rate instruments, indices, foreign exchange, precious metals, financial derivatives and exchange-traded commodities. The value of a derivative depends on the respective underlying asset - sometimes referred to as the reference base and background value. - Since around 2000, derivatives on underlyings have also been increasingly traded where the reference base is not an asset. These are referred to as alternative underlying instruments, such as catastrophe risks or weather risks. - See strike price, backspread, basket, credit default swap, derivatives transactions clearing obligation, derivatives transactions reporting obligation, elasticity, express certificate, index certificate, option, rainbow option, spread, tracker certificate, wagon, certificate. - Cf. Monthly Report of the Deutsche Bundesbank of October 2001, p. 34 ff., Annual Report 2003 of BaFin, p. 188 f. (Manipulations in Practice). Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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