# Delta Hedging

*Derivatives & Options — Finicade finance glossary*

Neutralising an option's directional risk by holding an offsetting amount of the underlying — delta-many shares per option — and topping it up as delta drifts. It's how a trading desk isolates the volatility bet from the price bet.

**Related terms:** [Delta](https://finicade.com/glossary/delta), [Gamma](https://finicade.com/glossary/gamma), [Hedging](https://finicade.com/glossary/hedging)

**Taught in:** Hull Street — Why Black–Scholes Works

Source: https://finicade.com/glossary/delta-hedging