Well - we will start here accepting that this was a long-due feature, and we were a bit late delivering on this. Glad that finally, this is available for our users!
As an F&O trader, you must have known that the price of the Option changes a lot, and in many cases - a lot faster than stocks. This change in price depends on the factors such as:
The price of the underlying security
Changes in any or all of these variables affect the option’s value. So as a trader, how can you understand and take maximum benefit of it? The only answer to this is Option Greeks. So let’s directly dive into it.
Greeks are a set of values that are used to measure different factors that might affect the price of an options contract. With Greeks, you can make a bit more informed decisions about which options to trade, and when to trade them and learn about price fluctuations.
There are five types of Greeks, each with their own significance:
Delta: Delta measures the change in an option’s price resulting from a change in the price of the underlying security (basically, its spot price)
Gamma: Gamma measures the change in delta with respect to the change in the underlying price.
Theta: This helps one measure how much value an option might lose each day as it approaches the expiry day.
Vega: Vega helps one understand how sensitive an option might be to large price swings in the underlying security. It is the change in P&L when Implied Volatility changes by 1% point.
Rho: Rho signifies the change in options price with respect to change in the risk-free interest rate.
Now that you have Greeks on Dhan (and you already have them on Option Chain integrated with TradingView - tv.dhan.co), we believe this is one more step in improving your Options Trading experience on Dhan.
That’s not all, as you know investing experience on Dhan is always a notch above. Along with Greeks - we bring a summary of information of PCR & its Interpretation, and yes - also Trade Data with Open Interest (OI) summary on the same view. Yes, enjoy!
As always, every feature on Dhan is in process of continuous improvement based on the feedback and suggestions we get. So keep them coming!