underlying
- 01 B2 Upper Intermediate
adj.describing the most important or basic cause of something, even if it is hidden.
adj.denoting a fundamental or root cause that is not immediately apparent on the surface.
Simple“The doctor tried to find the underlying cause of her constant headaches.”
In context“Economists argue that while the stock market crash was sudden, the underlying weaknesses in the banking system had been growing for years.”
UsageUsually placed before the noun it describes.
SynonymsAntonyms - 02 C1 Advanced
adj.lying under the surface of something else.
adj.positioned or situated directly beneath another layer or surface.
Simple“The gold was hidden in the underlying rock of the mountain.”
In context“The investigation revealed that the cracks in the pavement were caused by shifts in the underlying soil during the heavy rains.”
UsageOften used in geological or construction contexts.
SynonymsAntonymsoverlying - 03 C2 Proficiency
n.the real asset that a financial contract is based on.
n.the primary financial instrument or asset upon which a derivative's price is based.
Simple“If the price of the underlying goes up, the option becomes more valuable.”
In context“The volatility of the underlying significantly impacts the premium required for these complex derivative contracts.”
Teacher's tipIn general English, this is almost always an adjective; using it as a noun is restricted to professional financial and legal contexts.
Synonymsunderlying asset
Usage concentric underlying · underlying procedure
“Scientists will use the clumps of tissue to learn how diseases vary between patients, helping them identify which treatments are best for different people based on the particular pathology underlying their condition.”
“Seeking to understand any underlying factors will be a crucial part of treatment, says Hall.”
By surface analysis, underlie + -ing.
Etymology adapted from Wiktionary, available under CC BY-SA 4.0.