**Definition: **

Delta is used with respect to options: The rate of change of a financial derivative's price with respect to changes in the price of the underlying asset. Formally this is a partial derivative.

A derivative is perfectly delta-hedged if it is in a portfolio with a delta of zero. Financial firms make some effort to construct delta-hedged portfolios.

**Terms related to Delta:**

- The Delta Method
- The Gamma (of Options)
- Quasi-Differencing

**Writing a Term Paper? Here are a few starting points for research on Delta:****Journal Articles on Delta:**