delta neutral

Definition of "delta neutral"
  1. A type of options position designed so that the total delta equals zero
How to use "delta neutral" in a sentence
  1. The portfolio manager used a delta neutral strategy to hedge against changes in the underlying asset’s price.
  2. The risk of price changes was greatly reduced by creating a delta neutral position.
  3. By employing a delta neutral position, he aimed to reduce the risk associated with price fluctuations.

Provide Feedback
Browse Our Legal 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