Delta measures derivative price sensitivity to underlying asset value. Calculated as ratio of derivative value change to underlying price change. Delta ranges from 0 to 1 for call options, 0 to -1 for put options
Risk assessment determines possible mishaps, likelihood, consequences and tolerances. Results can be expressed quantitatively or qualitatively. Risk assessment is part of broader risk management strategy
Markets exist in multiple time frames simultaneously. Trends can be primary, intermediate, or short-term. Longer time frames provide more reliable signals
Netting offsets multiple positions or payments between parties. Used in financial markets, bankruptcy, and inter-company transactions. Reduces financial risks by combining multiple obligations
Fixed price refers to constant interest rate payments in swaps or fixed negotiated prices. Fixed price contracts allow price changes only under predefined circumstances
Black swan events are extremely rare and unpredictable occurrences. Term popularized by Nassim Nicholas Taleb in 2007 book. Events are extremely rare, have catastrophic consequences, and are easily predicted in hindsight