Term of the Day: Gamma

	View online | Add Investopedia to safe senders list March 19, 2014 Dictionary Investing Markets Personal Finance Active Trading Forex Professionals Tutorials Gamma The rate of change for delta with respect to the underlying asset's price. Gamma is an important measure of the convexity of a derivative's value, in relation to the underlying. In a delta-hedge strategy, gamma is sought to be reduced in order to maintain a hedge over a wider price range. A consequence of reducing gamma, however, is that alpha too will be reduced. Investopedia Says: Mathematically, gamma is the first derivative of delta and is used when trying to gauge the price movement...Learn more Share: An Introduction To Gamma-Delta Neutral Option Spreads Have you ever found strategies that make full use of the decay of an option's theta that are attractive, but you can't... Share: Getting To Know The "Greeks" An option's price can be influenced by a number of factors. These factors can either help or hurt traders... Share: Options Trading Strategies: Understanding Position Delta The article Getting To Know The Greeks discusses risk measures such as delta, gamma, theta and vega... Share: Using "The Greeks" To Understand Options Trying to predict what will happen to the price of a single option or a position involving multiple options... Share: Using Options Tools To Trade Foreign-Exchange Spot Delta, gamma, risk reversals and volatility are concepts familiar to nearly all options traders. However, these same tools used... Share: Options Greeks: Gamma Risk and Reward Gamma is one of the more obscure Greeks. Delta, Vega and Theta generally get most of the attention, but Gamma... Share: **NEW** Subscription Services: Income Investing subscribe now! ETF Investing subscribe now! Commodities Trading subscribe now! Options Trading subscribe now! Futures Trading subscribe now! Subscription Services: Investing Basics subscribe now! Warren Buffett Watch subscribe now! Forex Weekly subscribe now! Professionals In The Money subscribe now! Chart Advisor subscribe now! Stock Watch Weekly subscribe now! Personal Finance subscribe now! News To Use subscribe now! Related Slideshows: 1. 10 Options Strategies To Know 2. 6 Ways To Make Better Options Trades 3. 8 Ways To Lose Money On Bonds 4. Top 10 Forex Trading Rules 5. World's Greatest Investors Related FAQs: 1. Where can I purchase options? 2. Is it possible to trade forex options? 3. What is the difference between an options contract and a futures contract? 4. What are the distribution options for an inherited annuity? 5. Why are options very active when they are at the money? Videos More Videos » Veblen Good Price Elasticity of Demand Consumer Confidence Index Income Investing Short Squeeze You are currently subscribed as: mondemand.forex@blogger.com Unsubscribe | Manage Subscriptions | Subscribe Investopedia.com A Division of Valueclick, Inc. Copyright © 2014 All Rights Reserved Follow us on: