Delta Neutral
Definition
A position constructed so the overall delta is zero, making it insensitive to small changes in the underlying price.
Example
Market makers maintain delta-neutral portfolios to hedge directional exposure.
Related Terms
Frequently Asked Question
What does Delta Neutral mean?
Delta Neutral describes a position where the overall delta is zero, making it insensitive to small changes in the underlying price. Market makers and options traders use delta-neutral strategies to isolate volatility exposure.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.