What Is the Relationship between Delta and the Need for Dynamic Hedging?

Delta measures the sensitivity of an option's price to a $1 change in the underlying asset's price. To maintain a Delta-neutral position, a hedger must buy or sell the underlying asset in proportion to the portfolio's net Delta.

Since Delta changes as the underlying price moves (due to Gamma), the hedger must constantly adjust their position. This continuous adjustment is known as dynamic hedging.