GLOSSARY OF FINANCIAL DERIVATIVES TERMS

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

UNDERLYING

The variable on which a futures or option contract is based.

UNEXPECTED LOSS

Usually defined as the standard deviation of the amount of credit losses that a lender should anticipate on a portfolio in a single year.

The majority of the glossary and definitions of terms are provided by Risk Magazine. © Incisive Media Ltd. 2008. Click here to download "Risk Magazine Guide to Risk Management glossary of terms 2001" in its entirety as a PDF.