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 Glossary   >   D   >   "Delta" Definition   

        Delta

The measure of change in the value of an option compared with a change in the price of the underlying.

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. Applies to derivative products. Measure of the relationship between an option price and the underlying futures contract or stock price. For a call option, a delta of 0.50 means a half-point rise in premium for every dollar that the stock goes up. As options near expiration, in-the-money call option contracts approach a delta of 1.0, while in the money put options approach a delta of -1. See: hedge ratio, neutral hedge.

The ratio of change in the price of a derivative with the price of the underlying asset.

The measure of the rate of change of an option or warrant"s price compared to the change of price of the underlying instrument.A delta of 0.5 on a call option (the right to buy a share) means that the option price rises by 30p if the share price rises by 60p. The delta on a put option (the right to sell) will always be negative because the option price falls as the share price rises.

Delta
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Delta \ The measure of change in the value of an option compared with a change in the price of the underlying.

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. Applies to derivative products. Measure of the relationship between an option price and the underlying futures contract or stock price. For a call option, a delta of 0.50 means a half-point rise in premium for every dollar that the stock goes up. As options near expiration, in-the-money call option contracts approach a delta of 1.0, while in the money put options approach a delta of -1. See: hedge ratio, neutral hedge.

The ratio of change in the price of a derivative with the price of the underlying asset.

The measure of the rate of change of an option or warrant"s price compared to the change of price of the underlying instrument.A delta of 0.5 on a call option (the right to buy a share) means that the option price rises by 30p if the share price rises by 60p. The delta on a put option (the right to sell) will always be negative because the option price falls as the share price rises.


Delta / the measure of change in the value of an option compared with a change in the price of the underlying.

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. applies to derivative products. measure of the relationship between an option price and the underlying futures contract or stock price. for a call option, a delta of 0.50 means a half-point rise in premium for every dollar that the stock goes up. as options near expiration, in-the-money call option contracts approach a delta of 1.0, while in the money put options approach a delta of -1. see: hedge ratio, neutral hedge.

the ratio of change in the price of a derivative with the price of the underlying asset.

the measure of the rate of change of an option or warrant"s price compared to the change of price of the underlying instrument.a delta of 0.5 on a call option (the right to buy a share) means that the option price rises by 30p if the share price rises by 60p. the delta on a put option (the right to sell) will always be negative because the option price falls as the share price rises.