Delta
- mashaelalmalki
- Mar 25, 2022
- 1 min read
Delta (Δ) is a risk metric that estimates the change in price of a derivative, such as an options contract, given a $1 change in its underlying security. The delta also tells options traders the hedging ratio to become delta neutral. A third interpretation of an option's delta is the probability that it will finish in-the-money.
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