Futures Equivalent
The number of futures contracts needed to be associated with a speculative option position. Investopedia Says:
A futures equivalent can be calculated by taking the number of options and multiplying it by the previous day's risk factor (delta) for the same option series. This term is generally used to refer to the equivalent position in futures contracts that is needed to have a risk profile identical to the option. Related Terms:
Delta
Futures Contract
Option |