Alpha
Excess return above a benchmark
What is Alpha?
Alpha The excess return of an investment relative to a benchmark index. In options trading, alpha represents the edge or outperformance generated by a strategy beyond what market exposure alone would provide. Positive alpha indicates the strategy adds value beyond passive investing.
Complete Definition
The excess return of an investment relative to a benchmark index. In options trading, alpha represents the edge or outperformance generated by a strategy beyond what market exposure alone would provide. Positive alpha indicates the strategy adds value beyond passive investing.
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