Explain the Concept of ‘Greeks’ in Options Trading and Which One Is Most Critical for Delta-Hedging

The Greeks are a set of risk measures that quantify an option's sensitivity to changes in various underlying parameters. These parameters include the underlying asset price, time decay, volatility, and interest rates.

Delta is the most critical for delta-hedging. Delta measures the change in the option price for a one-unit change in the underlying asset price.

Delta-hedging aims to maintain a neutral delta position to minimize directional risk.