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delta neutral

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Financial Dictionary

Delta Neutral

A portfolio consisting of positions with offsetting positive and negative deltas. The deltas balance out to bring the net change of the position to zero.

Investopedia Commentary

As a result, you neutralize the response to market movements for a certain range.

Related Links

Capturing Profits with Position-Delta Neutral Trading
Going Beyond Simple Delta: Understanding Position Delta
Getting To Know The "Greeks"

See also: Delta, Delta Hedging, Gamma, Greeks

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