Definition

Daily Loss

Meaning ⎊ The incremental value decrease of an option position over one day driven by time decay.
Greeks.liveMarch 9, 2026

Daily Loss

Daily loss refers to the change in an option's value over a 24-hour period due to the passage of time. This is primarily driven by the theta of the position.

For long holders, this is a daily cost of holding the contract. Monitoring daily loss is important for risk management in long-term strategies.

It forces traders to be disciplined about their trade duration. It is a subtle but impactful cost.

Time Value Erosion
Maximum Loss
Loss Threshold
Expiration Decay
Collateral
Stop-Loss Order
Exposure Limits
Exit Strategy

Glossary

Stop Loss Order Types

Action ⎊ Stop Loss orders function as conditional instructions executed by an exchange when a specified price level is breached, initiating a market or limit order to mitigate potential losses.