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Trading terminology: what is a 'Greek', and why they call it that?

By LeftFooted | bitcoinea | 17 Oct 2025


A Greek is a person from Greece. But, oddly, it is a term that's used in finance.


The variables of risk that exist when you trade options are called Greeks.


So different Greeks represent different risk levels.


I know a Greek guy I always meet at the Spanish speaking event, I wonder what his risk level might be.


Kidding.


All jokes aside, Greeks are science, as in there's a scientific way to measure them.


There's a model that a couple of math geeks came up with, and it takes into account 1, price of the call option 2, strike price 3, interest rate and 4, time to maturity.


In other words, what's this, how much does this cost, what's the price that'll trigger the contract, what's the interest rate and when will the contract expire?


There are five main Greeks and each one represents a variable.


They're named after Greek letters, and the five main ones are Delta, Gamma, Theta, Vega and Rho.

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LeftFooted
LeftFooted

I’m a left-footed duck that loves writing. I write about cars, watches, craft beer and, you’ve guessed it, crypto Also active on read.cash


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