Definition

In finance, it's the Greek letter that measures how sensitive an option's value is to changes in interest rates—because apparently regular English words weren't confusing enough for derivatives traders. One of 'The Greeks' that options traders throw around to sound sophisticated at cocktail parties. Spoiler alert: most people just nod and pretend to understand.

Example Usage

The trader explained that the position's rho exposure was minimal, though everyone in the meeting was secretly Googling what that meant.

Source: Options trading terminology

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p@w

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