Hedging band
Definition · Level 5 · Greeks & volatility
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A no-trade zone around zero delta: re-hedge only when delta has drifted outside it. For the same number of trades a band leaves less noise than a timer. In theory the best band widens with the cube root of the cost.
Example
Band ±0.05: about 30 trades and $28 of noise, against 30 daily trades and $45.
Where Tradecraft teaches it
Level 5 · Greeks & volatility, in the lesson “Discrete hedging: noise, trades and bands”: Theory hedges continuously. Real hedging happens in steps, and the steps leave noise.
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