For options, ratio between the change in an option's theoretical value and the change in price of the underlying stock at a given point in time. For convertibles, percentage of a convertible bond representing the number of underlying common shares sold against the shares into which bonds are convertible. If a preferred is convertible into 2000 common shares, a 75% hedge ratio would be short (long) 1500 common for every 1000 preferred long (short). See: Delta.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). Hedge ratio (delta). Retrieved September 22, 2026, from http://smartdefine.org/hedge_ratio_(delta)/definitions/1155343 |
| Chicago | Barry Goldsmith. 2010. "Hedge ratio (delta)" http://smartdefine.org/hedge_ratio_(delta)/definitions/1155343 (accessed September 22, 2026). |
| Harvard | Barry Goldsmith 2010, Hedge ratio (delta), Smart Define, viewed 22 September, 2026, <http://smartdefine.org/hedge_ratio_(delta)/definitions/1155343>. |
| MLA | Barry Goldsmith. "Hedge ratio (delta)" 21 October 2010. Web. 22 September 2026. <http://smartdefine.org/hedge_ratio_(delta)/definitions/1155343> |