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First-order Greeks are in blue, second-order Greeks are in green, and alpari forex calculator compound-order Greeks are in yellow. The Greeks are vital tools in risk management. Scholes model are relatively easy to calculate, a desirable property of financial models, and are very useful for derivatives traders, especially those who seek to hedge their portfolios from adverse changes in market conditions. The most common of the Greeks are the first order derivatives: delta, vega, theta and rho as well as gamma, a second-order derivative of the value function.

For a vanilla option, delta will be a number between 0. For example, if the delta of a call is 0. 42 then one can compute the delta of the corresponding put at the same strike price by 0. 58 and add 1 to get 0.