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What is 'Delta'
Delta is the ratio comparing the change in the price of the underlying asset to the corresponding change in the price of a derivative. Sometimes referred to as the "hedge ratio."
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BREAKING DOWN 'Delta'
For example, with respect to call options, a delta of 0.7 means that for every $1 the underlying stock increases, the call option will increase by $0.70.
Put option deltas, on the other hand, will be negative, because as the underlying security increases, the value of the option will decrease. So a put option with a delta of 0.7 will decrease by $0.70 for every $1 the underlying increases in price.
As an inthemoney call option nears expiration, it will approach a delta of 1.00, and as an inthemoney put option nears expiration, it will approach a delta of 1.00.
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RELATED FAQS

Why does delta only range from 1 to 1?
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How can you use delta to determine how to hedge options?
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What are common delta hedging strategies?
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What are the limitations of using delta to hedge options?
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What industries typically use delta hedging techniques?
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