What is the definition of A Theta in Stock trading?
- Posted on November 27, 2019
- Financial Terms
- By admin admin
Theta is a term used in trading to measure the rate of decline in the value of an option caused by time passing. This is independent from the actual value of the underlying asset. The theory behind theta is that as the exercise date approaches, the value of the option declines as there is less likelihood of it moving a lot in price.
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