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Gamma Neutral

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Gamma Neutral
Describing a portfolio with a delta of zero. Delta is a measure of how much the price of a derivative increases (a positive delta) or decreases (a negative delta) for each increase in the price of the underlying asset. One constructs a gamma neutral portfolio by purchasing derivatives with equal, but opposite, deltas. See also: Hedging strategy.


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Gamma neutral simply means they have a very limited amount of risk.
 
 
 
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