Rho
Definition
The rate of change in an option’s price relative to a 1% change in the risk-free interest rate. More significant for long-dated options.
Example
Positive rho for calls; negative for puts. Implied Volatility (IV) Category: Options Definition: The market’s forecast of a likely movement in the underlying asset’s price, derived from current option prices. Related
Frequently Asked Question
What is Rho in trading?
The rate of change in an option’s price relative to a 1% change in the risk-free interest rate. More significant for long-dated options.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.