The sensitivity of an option's price or portfolio's value to the passage of one day in time. The theta of a long vanilla forex option position is generally negative, and the option will tend to lose more value each successive day as it approaches expiration, if other factors affecting its price remain constant.
Browse by Subjects
See All Related Terms »
official books of account
American Psychological Association (APA):
Chicago Manual of Style (CMS):
Modern Language Association (MLA):