What Is An Underlying Asset

An underlying asset is the term used to refer to an asset that a derivative is based upon. For example, the underlying asset for WTI Oil futures is WTI Oil itself. The movement in the price of the underlying asset relative to the price of the derivative is known as delta.

Related Terms

Return to Finance Dictionary

Start Discussion

Total Avg Compensation

April 2021 Investment Banking

  • Director/MD (9) $911
  • Vice President (34) $348
  • Associates (182) $232
  • 2nd Year Analyst (104) $151
  • Intern/Summer Associate (95) $145
  • 3rd+ Year Analyst (26) $145
  • 1st Year Analyst (389) $131
  • Intern/Summer Analyst (317) $82