Can anyone explain in depth the importance of greeks in option trading ?

Trading
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Need to know in depth

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Hey @RitanshuVijay

Option Greek helps you understand measures of risk involved in an options position.

They are measured through :

  1. Delta – Measures the rate of change of options premium based on the directional movement of the underlying
  2. Gamma – Rate of change of delta itself
  3. Vega – Rate of change of premium based on change in volatility
  4. Theta – Measures the impact on premium based on time left for expiry.

You can refer to this Varisty page for a comprehensive understanding of Option Greeks.

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