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Finance Dictionary and Glossary of Investment Terms
hedge ratio
Definition 1.
The change in price of a call option for every one-point move in the price of the underlying security. also called delta.
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Definition 2.
1. A ratio comparing the amount you are hedging with the size of the position being hedged against.2. A ratio comparing the value of futures contracts purchased or sold versus the value of the cash commodity being hedged against.
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