What is Delta Hedging?
Delta Hedging — Offsetting the directional risk of an options position by trading the underlying, so small price moves don’t change its value.
In simple terms
Option market-makers delta-hedge to stay direction-neutral.
Why Delta Hedging matters when you invest
Understanding delta hedging helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.
Delta Hedging — frequently asked questions
What is Delta Hedging?
Offsetting the directional risk of an options position by trading the underlying, so small price moves don’t change its value.
What does Delta Hedging mean in the stock market?
Offsetting the directional risk of an options position by trading the underlying, so small price moves don’t change its value. Option market-makers delta-hedge to stay direction-neutral.
Can you give an example of Delta Hedging?
Option market-makers delta-hedge to stay direction-neutral.
Put it into practice — open a free account.
Enter your mobile number to get started — then download the ROAR app to finish KYC in about 10 minutes.