One of four major risk measures used by options traders (the others being gamma, theta, and vega). Within options trading, delta is a ratio (sometimes referred to the “hedge ratio”) that compares the price of an underlying asset with the change in the price of an option. This indicates how many options contracts are needed to hedge a long or short position in an underlying asset. Delta measures the degree to which an option is exposed to shifts in the price of the underlying asset itself.
Delta
Market Terms
We don't know everything about the markets. We're just devoted to learning. Taken from those smarter than ourselves, here's how we define Delta.