GAMMA: The sensitivity of an options’ delta over a one point change in the underlying. Als known as the delta of the delta.
GREEKS: A set of factor sensitivities frequently used for measuring the exposures of derivative portfolios.
HAIRCUT: On cquity option exchanges, money deposited by a trader with the clearing house to ensure the integrity of his trades. This is similar to a margin requirement on a commodity exchange.
HEDGE: To take offsetting risks.
HEDGER: A trader who enters the market with the specific intent of protecting an existing position in an underlying contract.
HETEROSCEDASTICITY: Non-constant volatility.
HISTORICAL VOLATILITY: The actual volatility that an underlying has exhibited in the past.
HOMOSCEDASTICITY: Constant volatility.
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