Business and Personal Finance Dictionary
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
- DELTA HEDGE
Is a risk management operation which uses derivative instruments against actual underlying securities or instruments. The composite option characteristic of the combined trade indicates the market exposure experienced by the trading or investing entity at that moment in time. When the market price or interest rate exposure is essentially minimized to zero, then the hedge is considered Delta Neutral.Back