Delta: Difference between revisions

69 bytes added ,  12 December 2020
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A {{f|buzzword}} used by wannabes who mean “difference”. In fairness delta does mean, more or less, “difference”, but there’s a less mystifying way of getting across that concept: The word “difference”.
{{Def|Delta|/ˈdɛltə/|n|}}''For the technical term relating to [[hedging]], see [[delta-one]]''


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 prince of the [[underlying]] asset it is a derivative ''[[of]]''.  
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.