In either case, a volatility of delta 0 is what investors call “delta neutral.” It means that changes in the price of an underlying asset don’t change the price of the derivative at all. While that scenario is impossible in a single financial product, many traders try to build a delta neutral position overall.
Defining a Derivative delta neutral investing More In order to understand delta neutral investing, you should familiarize yourself with derivatives first. Simply put, a derivative is any financial asset whose price is based on the value of some underlying asset.
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