Delta hedge

Delta Hedge
Delta Hedge definition :
A dynamic hedging strategy using options that calls for constant adjustment of the number of options used, as a function of the delta of the option.
What's A Spread?

A delta hedge is a simple type of hedge that is widely used by derivative dealers to reduce or eliminate a portfolio's exposure to some underlier.

DELTA HEDGE - Is a risk management operation which uses derivative instruments against actual underlyin...
DELTA NEUTRAL - Occurs when the market risk exposure, in terms of price or interest rate level, for an ...

Delta hedge
A dynamic hedging strategy using options with continuous adjustment of the number of options
used, as a function of the delta of the option.
Delta neutral ...

As a delta hedge can be used to hedge a position in a derivative, by reversing the hedge, and combining this with cash or debt, one can replicate the cash flows of the derivative.

See also: Delta Hedge, Hedged Tender, Hedge Ratio, Naked Position, Pairs Trade, Short Selling
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Aggressive Growth Hedge Fund
Buying Hedge
Cross Hedge
Cross hedging
Delta Hedging ...

An option portfolio that has been delta hedged so that it has no exposure to small moves in the price of the underlying.

A futures hedge that has both maturity and currency mismatches with an underlying exposure.
Delta hedge ...

See also: Delta, Dynamic hedging, Sensitivity, Delta neutral, Time Value