Payoff profile

Payoff profile

The slope of a line graphed according to the value of an underlying asset on the x-axis and the value of a position taken to hedge against risk exposure on the y-axis. Also used with changes in value. See: Risk profile.

Payoff Profile

In options, a chart showing the profits and losses on a contract over time. It is calculated by plotting the value of the underlying asset on the x-axis and the risk on the y-axis.