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If you're new to Options trading, you may have heard the term "Greeks", but are unsure as to what it means. So — what are the Greeks, and how can they help you become a more successful Options trader?
In short, the Greeks are a set of criteria used by Options traders to understand how the price of an Option reacts to changes in certain variables. There are five main Options Greeks: Delta, Vega, Theta, Gamma and Rho.
Don't be intimidated by these terms: They’re likely less complicated than you think. In this article, we'll walk you through each Greek, explaining how it can help you minimize the risks and enjoy the advantages of Options trading.
Before that, let's get acquainted with Options as a whole.