Underlying Asset Definition

The underlying asset is the financial instrument on which a derivative's price is based.

What is an Underlying Asset?

Derivatives such as CFDs, options, and futures derive their value from movements in the underlying asset.

The underlying asset can be a stock, index, currency, commodity, or other tradable instrument.

When trading a CFD on crude oil, crude oil is the underlying asset.

Unrealized profit and loss is the current gain or loss on an open position that has not yet been closed.

An uptrend describes a sustained upward movement in an asset's price, characterized by higher highs and higher lows.

The US Dollar Index measures the value of the U.S. dollar relative to a basket of major foreign currencies.