Rate Of Change

Filed Under Active Trading , Forex , Options , ROC , Technical Analysis

Definition of 'Rate Of Change'
The speed at which a variable changes over a specific period of
time Rate of change is often !sed when spea"ing abo!t
moment!m, and it can generally be expressed as a ratio between
a change in one variable relative to a corresponding change in
another #raphically, the rate of change is represented by the slope
of a line
Investopedia explains 'Rate Of Change'
Rate of change is often ill!strated by the #ree" letter delta $any
traders pay close attention to the speed at which one variable
changes relative to another For example, option traders st!dy the
relationship between the rate of change in the price of an option
relative to a small change in the price of the !nderlying asset,
"nown as an options delta
Read more% http%&&wwwinvestopediacom&terms&r&rateofchangeasp'ix(()*ns+,-dm