Delta Hedging in Investopedia:

Another example:

How is calculated the Delta in FX options? Can someone give me an example of delta hedging?

Many thanks

QuoteDislikedAn options strategy that aims to reduce (hedge) the risk associated with price movements in the underlying asset by offsetting long and short positions. For example, a long call position may be delta hedged by shorting the underlying stock. This strategy is based on the change in premium (price of option) caused by a change in the price of the underlying security. The change in premium for each basis-point change in price of the underlying is the delta and the relationship between the two movements is the hedge ratio.

For example, the price of a call option with a hedge ratio of 40 will rise 40% (of the stock-price move) if the price of the underlying stock increases.Typically, options with high hedge ratios are usually more profitable to buy rather than write since the greater the percentage movement - relative to the underlying's price and the corresponding little time-value erosion - the greater the leverage.The opposite is true for options with a low hedge ratio.

Another example:

QuoteDislikedFor example, a http://www.riskglossary.com/word/del...ous_metals.gif dealer might sell a call option on gold, resulting in a negative gold delta of 5,200 ounces. To mitigate this exposure, he then purchases 5,200 ounces of gold spot. Together, the short option and long gold have a combined gold delta of zero

How is calculated the Delta in FX options? Can someone give me an example of delta hedging?

Many thanks