Definitions for "hedge ratio"
The change in price of a call option for every one-point move in the price of the underlying security. also called delta.
The ratio of derivatives contracts to the underlying risk exposure.
A ratio, usually expressed as a decimal between 0 and 1, representing the likely movement in an option premium for a given move in the underlying market price of the relevant commodity, currency or investment instrument. The hedge ratio indicates how much of the underlying asset to hold against an option position in order to achieve a riskless state. (See also Delta).
The percentage/portion of cover taken, in relation to the total exposure.