Introducing EMS Trading API  

EMS Trading API

- Unlimited trading accounts in just one place.

Theta Ratio

The Theta Ratio is a metric that compares an option's time decay (Theta) to its premium, showing the percentage of the option's value that is lost each day due to time decay, helping traders evaluate if the potential return is worth the daily loss from time erosion.

The Theta Ratio is a key metric in options trading. It measures how an option's value decreases over time. This decrease is known as time decay. Understanding the Theta Ratio helps traders assess how quickly an option loses its premium as the expiration date approaches.