List of Financial Market Terms

In options trading, Delta (also referred to as a "hedge ratio") compares the change in the price of the asset to the change in the price of a derivative.

For Example, if an Option has a Delta of .34 then that Option will move 34 cents for every +1 point move in the stock. 

Related Terms: Butterfly Spread, Straddle Option, Strangle Option, Vertical Spread, Gamma Option, Theta Option, Vega Option, Rho Option, Extrinsic Value, Implied Volatility, CBOE, The Greeks, What Is An Option?

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