This concept comes from option hedging. A brokerage's issuance of options will generate a certain amount of profit and loss, and dynamic hedging means that the brokerage purchases the corresponding option subject matter based on the sensitivity of the option relative to the spot, so that the fluctuation in option value is exactly offset by the profit and loss of the underlying position established by the brokerage firm. The traditional hedging method is static hedging (for example, when a broker issues a Call Option, it simultaneously buys the stock corresponding to the option and holds it until the option expires), while dynamic hedging is to dynamically adjust the stock position based on the option sensitivity calculated by the blacksholes formula. , so it is called dynamic hedging.

For specific details, you can read John Hull's masterpiece "Options, Futures and Other Derivatives", a well-known derivatives textbook.