Underlying futures contract
The futures contract covered by an option; for example, a 300 Dec. corn call’s underlying futures contract is the December corn futures contract.
Unsystematic risk
The risk of price change for an individual stock, commodity, or industry. Anything from an oil discovery to a change in management could affect this sort of risk. Unsystematic risks are reduced or eliminated through diversification of holdings, not by hedging with index futures. Compare with systematic risk.
Uptrend
A channel of upward price movement.
