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In the world of options trading, there are various tools traders use to measure risks and potential rewards. One of these tools is “Position Delta,” which helps traders estimate how much they might profit or lose based on changes in the price of the underlying asset. If you’re new to options trading or have heard…
Delta measures an option’s price sensitivity to changes in the underlying asset, while delta hedging is a strategy to neutralize directional risk by balancing positive and negative delta positions. What is Delta? Delta measures the directional risk of a stock or options position. It represents how much an option’s premium changes with a one-point move…