In the world of finance, Greek letters are used to represent how sensitive a financial derivative’s prices are to changes in parameters; the option greeks are the option version of these. Financial derivatives can be volatile and sensitive to factors such as changes in the pricing of the underlying asset. Each character denotes the sensitivity of an option’s price to the change in some attribute of the underlying asset, such stock price and volatility. These attributes are components of risk that a trader needs to control if he/she is to manage the risk of their portfolio.
