Before entering into any trade, it is important to understand the risks of the trade. Options market is much more riskier when compared to equity market. If you enter the options market without actually knowing how it works, you could end up losing so much money. Even though the price of an option depends mainly on the price of the underlying stock, it varies not just by the movement of the underlying stocks but there are other factors that affect the price of the option, called 'the greeks'. In order to become a better options trader it is important to learn about the option greeks. There are two types of greeks - first order greeks and second order greeks. The first order greeks are those that directly affect the price of an option and the second order greeks are those that affect other option greeks. The most commonly used option greeks are 1. Delta 2. Gamma 3. Theta 4. Vega Delta Delta helps us to determine how much the price of an option change with respect to the change i...