delta
Definition
Rate of change in the price of an option relative to price of the underlying futures contract or asset (security). It is between 0 and +1 for calls and between 0 and –1 for puts, and indicates the probability of an option to be in-the-money by its expiration date. Also called hedge ratio.
delta is in the Commodities & Precious Metals Trading, Currency Trading, Disaster Planning & Risk Management, Investing and Securities & Futures Trading subjects.
delta appears in the definitions of the following terms: alpha, hedge ratio, beta and gamma
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