Delta Neutral

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Dictionary Says

Definition of 'Delta Neutral'

A portfolio consisting of positions with offsetting positive and negative deltas. The deltas balance out to bring the net change of the position to zero.
Investopedia Says

Investopedia explains 'Delta Neutral'

As a result, you neutralize the response to market movements for a certain range.

Related Definitions

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    Delta

    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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      Dimensions of risk involved in taking a position in an option (or other derivative). Each risk variable is a result of an imperfect assumption or relationship of the option with another ...
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    • Delta Spread

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