underlying

/ˌʌndərˈlaɪɪŋ/
adjective
  1. Being the real or basic cause, reason, or basis of something, often not immediately obvious.
    • The doctor treated the symptoms but also looked for the underlying cause of the pain.
    • An underlying theme of the novel is the struggle for freedom.
    • The company's underlying financial problems were hidden by strong sales.
  2. Located beneath or below something else.
    • We removed the carpet to repair the underlying floorboards.
    • The underlying rock layer is made of granite.
    • The underlying soil is rich in clay, which affects drainage.
noun
  1. Something that serves as a foundation or basis, especially in finance (e.g., an asset on which a derivative is based).
    • The underlying in this trade is a basket of tech stocks.
    • Investors should study the underlying before buying a futures contract.
    • The value of the option depends on the price of the underlying.
What does "underlying" mean? | whatsthatwordmean | whatsthatwordmean