Cryptocurrency Q&A
What is the difference between delta hedging and gamma hedging?
What is the difference between delta hedging and gamma hedging?
CryptoQueenBee
Sun Nov 03 2024
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5 answers
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I want to understand the difference between delta hedging and gamma hedging. I know they are both risk management strategies, but how do they differ from each other in terms of their approach and effectiveness?
5 answers
GeishaMelody
Tue Nov 05 2024
Delta and Gamma Hedging are two advanced strategies employed in financial markets.
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SsamziegangStroll
Tue Nov 05 2024
When following the delta-hedging strategy, investors select hedging positions that counteract their existing portfolio risks.
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Martino
Tue Nov 05 2024
The primary objective of delta-hedging is to ensure that the overall delta of the portfolio remains equal to zero, thereby minimizing exposure to price fluctuations.
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Maria
Tue Nov 05 2024
Gamma hedging, on the other hand, focuses on the second-order risk associated with changes in delta.
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DigitalDynastyGuard
Mon Nov 04 2024
To implement gamma hedging, investors must construct a portfolio with a zero overall gamma, alongside maintaining a zero delta.
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