Understanding Delta - Artificial Alpha - Episode 2 Titelbild

Understanding Delta - Artificial Alpha - Episode 2

Understanding Delta - Artificial Alpha - Episode 2

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This episode explains a key concept in finance, measuring the sensitivity of an asset's price to changes in its underlying asset's price. It details how delta is used to predict price movements, hedge portfolios, and strategise trades, focusing on its application to options, futures, and forwards. The explanation includes practical examples illustrating how delta varies across different instruments and is impacted by factors like dividends and time to expiry. Finally, it explores delta hedging, a risk management strategy utilising delta to create delta-neutral portfolios.

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