Medi Assist Healthcare IPO

Explore
Open Demat Account Login
Finance Wiki
Trending Categories
A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
U
V
W
X
Y
Z
#

Trading Terms

Gamma Hedging

This technique involves the use of derivative instruments, such as options, to adjust the portfolio's exposure to changes in the underlying asset's volatility. It is a common practice among investors to manage risk and protect their investments.

Welcome, class. Today, we will be discussing an important concept in finance known as Gamma Hedging. This strategy is essential for managing risk and protecting investments in the ever-changing market.

Gamma Hedging is a technique that involves using derivative instruments, such as options, to adjust the portfolio's exposure to sudden and aggressive movements in the underlying security. This helps to eliminate the risk formed by these unpredictable fluctuations.

By utilizing Gamma Hedging, investors are able to control their exposure to changes in the underlying asset's volatility. This is crucial in maintaining a balanced and stable portfolio, especially in a volatile market.

It is important to note that Gamma Hedging is a common practice among investors, as it allows

Explore other categories
Trading Terms encompass terminology and phrases commonly used in financial markets, including terms
Learn More
Legal contracts that represent financial value, such as stocks, bonds, options, futures, and various
Learn More
All terms & concepts related to financial contracts whose value is based on an underlying asset,
Learn More
All terminology and concepts related to various tax types, tax laws, and taxation principles.
Learn More
Investments that provide regular, fixed payments, such as bonds and treasury bills.
Learn More
All terms related to various types of organizations or individuals, like investors, banks, insurers,
Learn More
All terms and concepts related to stocks, also known as equities, which represent ownership shares i
Learn More
All terms and concepts related to insurance, which is a financial arrangement that provides protecti
Learn More
All terminologies and concepts related to financial derivatives, including options and futures contr
Learn More
All terms and concepts related to borrowing money, including different types of loans, interest rate
Learn More
Enjoy Zero Brokerage On Stock Investments
Send App Link