Unlimited Trading @ ₹899 per month
PS www.ProStocks.com
FREE Account Opening + No Clearing Fees
Loading...

Time decay or erosion

The decrease in the value of an Option with passage of time is called Time decay.

Zerodha (Flat Rs 20 Per Trade)

Invest brokerage-free Equity Delivery and Direct Mutual Funds (truly no brokerage). Pay flat Rs 20 per trade for Intra-day and F&O. Open Instant Account and start trading today.

A term used to describe how the time value of an option can decay or reduce with the passage of time.

Answered on

Zerodha (India's Best & No. 1 Broker)

  Special Offer - Free Equity Delivery and Mutual Funds

  • Brokerage-free equity delivery trades.
  • Brokerage-free Direct Mutual Fund.
  • Pay ₹20 per trade for Intraday & F&O.
  • The best trading platform in India.

Open Instant Demat Account Read Reviews

Comments

Add a public comment...

List of all terms Ask your question

More Options Trading Terms / Definitions ...

  1. Algo Trading
  2. American Option
  3. Assignment in Options
  4. At-the-money (ATM)
  5. Bear Call Spread
  6. Box Spread
  7. Box Spread Strategy
  8. Break-Even Point (BEP)
  9. Bull Call Spread
  10. Call Option
  11. Cloud Order
  12. Delta Option Greek
  13. European Option
  14. Exercising Options
  15. Expiry
  16. Gamma Option Greek
  17. In-the-money (ITM)
  18. Index Options
  19. Long Option
  20. Long position
  21. Lot Size
  22. Mark-to-Market Settlement (MTM)
  23. Moving averages
  24. Open Interest (OI)
  25. Option Greeks
  26. Option Market Participants
  27. Option Tick Size
  28. Option Writer or Option writing
  29. Options Arbitrage
  30. Options Chart
  31. Options Contract
  32. Options Fair Market Value
  33. Options Hedging
  34. Options Market
  35. Options Premium
  36. Options Secondary Market
  37. Options Spread
  38. Options Trading App
  39. Options Writer
  40. Out-of-the-money (OTM)
  41. Over The Counter (OTC) Options
  42. Paired Option Contracts
  43. Post-market Trading Hours (Post Close Trading Session)
  44. Pre-Market Trading hours
  45. Put Option
  46. Rho Option Greek
  47. Short Option
  48. Spot Price
  49. Squaring Off an Option
  50. Strike price or exercise price
  51. Synthetic position
  52. Theta Option Greek
  53. Time decay or erosion
  54. Uncovered call writing
  55. Vega Option Greek
  56. vertical spread option strategy
  57. Volatility
  58. Volume in Options
special_offers
By Popular Stock Brokers
Zerodha Review   Zerodha

Free Eq Delivery & MF
Flat ₹20 Per Trade in F&O

Open Instant Account

Angel Broking Review   AngelOne

Free Equity Delivery
Flat ₹20 Per Trade in F&O

Open FREE Demat Account

Motilal Oswal

30 days brokerage free trading
Free - Personal Trading Advisor

Open Account

Kotak Securities Review  Kotak Securities
    (Trade Free Plan)

FREE Intraday Trading (Eq, F&O)
Flat ₹20 Per Trade in F&O

Open Online Demat Account

Upstox Review   Upstox

FREE Account Opening
Flat ₹20 Per Trade

Enquire Now

ProStocks Review  ProStocks

Unlimited @ ₹899/month
Rs 0 Demat AMC

Open FREE Account

Fyers Review   Fyers

Free Eq Delivery Trades
Flat ₹20 Per Trade in F&O

Open Instant Account

Paytm Money Review  Paytm Money
Paytm Money QR Code

Pay ₹0 brokerage for first 10 days

Flat ₹20 Per Trade

Open Instant Account Now!

Open an Instant Account with Zerodha