# Hedge ratio (delta)

- The ratio of volatility of the portfolio to be hedged and the return of the volatility of the hedging instrument.
__The New York Times Financial Glossary__

*Financial and business terms.
2012.*

### Look at other dictionaries:

**hedge ratio**— The relationship between the number of contracts required for a direct hedge and the number of contracts required to hedge in a specific situation. The concept of hedging is to match the size of a positive cash flow from a gaining futures… … Financial and business terms**Hedge-ratio**— The proportion of underlying securities or options needed to hedge a written option. The hedge ratio is determined by the delta … International financial encyclopaedia**Delta**— Delta measures how rapidly the value of an option moves in relation to the underlying value. It is the change in an option s price divided by the change in the price of the underlying instrument. An option whose price changes by $1 for every $2 … International financial encyclopaedia**delta**— A measure of how much an option premium changes, given a unit change in the underlying futures price. Delta often is interpreted as the probability that the option will be in the money by expiration. Chicago Board of Trade glossary The… … Financial and business terms**Delta Hedging**— An options strategy that aims to reduce (hedge) the risk associated with price movements in the underlying asset by offsetting long and short positions. For example, a long call position may be delta hedged by shorting the underlying stock. This… … Investment dictionary**Delta**— The ratio comparing the change in the price of the underlying asset to the corresponding change in the price of a derivative. Sometimes referred to as the hedge ratio. For example, with respect to call options, a delta of 0.7 means that for every … Investment dictionary**Delta**— Also called the hedge ratio, the ratio of the change in price of a call option to the change in price of the underlying stock. The New York Times Financial Glossary * * * delta del‧ta [ˈdeltə] noun [countable usually singular] 1. STATISTICS a… … Financial and business terms**Hedge (finance)**— For other uses, see Hedge (disambiguation). Finance Financial markets … Wikipedia**neutral hedge**— hedge that is expected to yield a dollar neutral result of the combined position, regardless of price change in any part of the hedge securities. For any convertible trading at a premium, this ratio is less than 100%. The higher the convertible… … Financial and business terms**Коэффициент хеджирования**— (HEDGE RATIO (или DELTA)) ожидаемое изменение стоимости опциона, отнесенное к изменению рыночной цены финансового актива, лежащего в его основе … Финансовый глоссарий