# Underlying Asset

*Derivatives & Options — Finicade finance glossary*

The thing a derivative derives its value from — the stock behind an option, the oil behind a futures contract. Everything about the derivative's payoff traces back to where the underlying ends up.

**Also known as:** underlier, forward-as-underlier

**Related terms:** [Derivative](https://finicade.com/glossary/derivative), [Option](https://finicade.com/glossary/option), [Futures Contract](https://finicade.com/glossary/futures-contract)

**Taught in:** Hull Street — Futures Markets: A First Look

Source: https://finicade.com/glossary/underlying-asset