Business, Legal & Accounting Glossary

Definition: Delta


Quick Summary of Delta

The change in price of a call option for every one-point move in the price of the underlying security. also called hedge ratio.

Examples of Delta in a sentence

The manager was happy when he realized his elasticity delta was one-half because that meant that he could continue to raise prices.

The delta was mentioned by the trader but his client did not understand so he tried explaining the relationship of the underlying securities.

When the stockbroker saw that the car company had made large profits in the previous quarter, he knew that many investors who had bought an option to buy the stock would be calling him to sell their option to profit off the high delta.

Synonyms For Delta

Hedge Ratio

Related Phrases

Delta One
dynamic hedging strategy
option pricing curve
delta neutral
neutral spread
elasticity of an option
option elasticity
neutral hedge ratio
delta hedging
position delta
delta spread
delta cross hedge

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Delta. Payroll & Accounting Heaven Ltd.
October 05, 2022
Chicago Manual of Style (CMS):
Delta. Payroll & Accounting Heaven Ltd. (accessed: October 05, 2022).
American Psychological Association (APA):
Delta. Retrieved October 05, 2022
, from website:

Definition Sources

Definitions for Delta are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 21st November, 2021 | 0 Views.