# Greek Letters - Derivatives

The Greek letters measure the changes that occur in different factors of a financial option.

The value of an option depends on a number of factors, including the underlying asset and its volatility, the expiration date, and interest rates. The "greeks" are a set of measures that describe the sensitivity of your price to these factors.

They are therefore a set of mathematical measures that describe the sensitivity of the premium price to these factors and are essential to manage the "position" that a trader / manager may have, therefore, their knowledge allows us to quantify and manage risk. before the variations in each one of the underlying variables that expressly measure each one of them.

## Greek letter types in derivatives

The Greek letters are:

- Delta.
- Gamma.
- Vega.
- Theta.
- Rho.

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