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UNDERLYING

That's the real thing when making a contract: a stock, an index, or a commodity.

Published by The Retail Trader · JUL 31, 2026 · Derivatives (F&O)

Underlying — that is the real thing regardless of the contract: a stock, an index, or a commodity.

WHERE THIS FITS IN

This term comes under Derivatives (F&O), in the section "BASE OF DERIVATIVE". First of all that structure is given as complete F&O:

RELATED TERMS TO READ

Other terms in this group — understanding them together is more useful:
• Derivative
• Contract
• Lot Size
• Expiry
• Weekly vs Monthly Contract
• Contract Cycle
• Rollover
• Cash Segment vs Derivative Segment
• Cash Settlement vs Physical Settlement
• Open Interest

To read the entire group and all its examples in one place, see the journal "DERIVATIVES: DICTIONARY OF FUTURES & OPTIONS" - this term has been taken from there.

This entry is for educational purposes only and is not a recommendation to buy or sell. Exchanges change charges, margins, lot sizes and expiry rules from time to time, so verify any figures with your broker or exchange.

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