List of Financial Market Terms

Theta is defined as the amount an option will decrease each day over time, or the time decay of an option.  For example, if the option is priced at $200, and theta is -10, then the option will likely be $190 at the end of the day.

Theta, and the rest of The Greeks are used mainly in options trading and with an options trading system.

Related terms: Vega, Gamma, Delta, Greeks

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