In Options Trading, What Is the Significance of the “Greeks” like Delta and Gamma?

The Greeks are a set of risk measures used to quantify the sensitivity of an option's price to changes in underlying parameters. Delta measures the option price change for a one-unit change in the underlying asset's price, representing the option's effective exposure.

Gamma measures the rate of change of Delta with respect to the underlying price, indicating how quickly the option's exposure changes. These are crucial for portfolio risk management and hedging strategies.