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{{Def|Delta|/ˈdɛltə/|n|}}''For the technical term relating to [[hedging]], see [[delta-one]]'' | |||
A voguish way [[celery peddler|celery peddlers]] convey the idea of “difference”. In fairness, “[[delta]]” ''does'' mean, more or less, “difference”, but there’s a less mystifying way of getting across that idea: The word, “difference”. | |||
===Technical answer=== | ===Technical answer=== | ||
The {{tag|option}} [[delta]] of a derivative is the ratio between a change in the price of that {{tag|derivative}} and the change in | The {{tag|option}} [[delta]] of a derivative is the ratio between a change in the price of that {{tag|derivative}} and the change in price of the [[underlying]] asset it is a derivative ''[[of]]''. | ||
Delta values range from 1.0 to -1.0. | Delta values range from 1.0 to -1.0. |