What Role Do the “Greeks” Play in Adjusting Option Trade Priority?
The "Greeks" (Delta, Gamma, Theta, Vega, Rho) are measures of an option's sensitivity to various factors, and they play an indirect role in adjusting trade priority by informing a trader's need for urgency. For example, a high Theta (time decay) value might compel a trader to execute a trade quickly to avoid value loss, similar to RBF being used for an urgent transaction.
While the Greeks do not directly affect the order book's priority rules (price/time), they determine the necessity of using a higher-priority order type (like a market order or aggressive limit order).