Delta of a forward chart

[mbbx5va2]

Hi just a quick on I am trying to understand OTM and ITM positions in forwards and what the delta would be. Does anyone have a chart.

Thanks

 

[gsarm1987]

@mbbx5va2 Unlike options, the Delta of forwards stays constant. forwards and futures have a linear payoff, unlike options. OTM is when you are losing and ITM is when you are gaining as a counterparty. The payoff would be an upward-sloping line if you are long, the left side would be negative (OTM) right side positive(ITM). Conversely, if you are short, you'd see a downward sloping line, left side positve (ITM) and right side negative (OTM). easy to plot: X-axis: spot, y-axis: Fwd - Spot. I hope i answered your question. Re: Delta hedging in terms of forwards there is a link: http://trtl.bz/2FQxUnN

 

[mbbx5va2]

Thank you for your help