Hedge ratio

Hedge ratio

Ratio of options or futures to the number of underlyings at which the portfolio is fully hedged. The hedge ratio is the reciprocal of the delta.

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Part of Speech: noun
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Industry/Domain: Banking
Category: Investment banking
Company: UBS
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Related terms

hedge ratio

Banking; Investment banking

Ratio of options or futures to the number of underlyings at which the portfolio is fully hedged. The hedge ratio is the reciprocal of the delta.

hedge ratio

Financial services; Commodity exchange

Ratio of the value of futures contracts purchased or sold to the value of the cash commodity being hedged, a computation necessary to minimize basis risk.

hedge ratio

Banking; Personal banking

The relationship between the size of a position needed in a hedge instrument and the size of the position being hedged. The hedge ratio is determined by the delta.

hedge ratio (delta)

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Accounting; Auditing

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Mathematics; Calculus

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Banking; Investment banking

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Banking; Investment banking

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