Underlining vs. Underlying

Underliningnoun

An act or instance of marking text with an underline.

Underlyingadjective

lying underneath

‘We dug down to the underlying rock.’;

Underliningnoun

A lining on the inside of a garment.

Underlyingadjective

basic or fundamental

‘Points and straight lines are underlying elements of geometry.’;

Underlyingadjective

implicit

‘Many nursery rhymes have an underlying meaning.’;

Underlyingnoun

(finance) The entity from whose performance a derivative derives its value.

Underlyingadjective

Lying under or beneath; as, the underlying strata of a locality.

Underlyingadjective

Fundamental; basic; as, underlying principles; underlying causes.

Underlyingadjective

Implicit; not immediately obvious; requiring careful scrutiny to discover; as, the underlying sarcasm in her seemingly innocuous remark..

Underlyingadjective

in the nature of something though not readily apparent;

‘shortcomings inherent in our approach’; ‘an underlying meaning’;

Underlyingadjective

located beneath or below

Underlyingadjective

being or involving basic facts or principles;

‘the fundamental laws of the universe’; ‘a fundamental incompatibility between them’; ‘these rudimentary truths’; ‘underlying principles’;

Underlying

In finance, the underlying of a derivative is an asset, basket of assets, index, or even another derivative, such that the cash flows of the (former) derivative depend on the value of this underlying. There must be an independent way to observe this value to avoid conflicts of interest.