Introduction to the Greeks

The value of an option depends on several factors including the underlying asset, the time to expiration, the interest rates and the volatility of the underlying asset. The 'Greeks' are a set of measures that describe the sensitivity of an option's price to these factors. Thus the 'Greeks' are useful in the risk management of an option position. For each sensitivity measure it is assumed that all other factors remain constant. If you trade options using SaxoTrader, you can view the Greek values associated with an option's position by clicking on the Position Details view in the Account Summary.

The following links provide a detailed description of the most common Greeks and how their respective values influence your trading decisions.