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Delta is a ratio that compares the change in the price of an asset to the change in the price of its derivative. Delta is often used in hedging strategies and is sometimes referred to as a hedge ratio. Delta expresses the amount of price change a derivative will experience based on the price change of the underlying asset.

Delta can be positive or negative, and has a value between 0 and 1 for a call option and -1 to 0 for a put option. Technically, the value of an asset’s delta is the first derivative of the value of the asset with respect to the underlying asset’s price.