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A delta one product is a derivative which has, or is close to having, a one-to-one relationship with an underlying asset in terms of price movements. In other words, when there’s a change in the underlying product’s value, you would expect to see the derivative price move in the same direction and with a similar magnitude.
Delta one definition
A delta one product is a derivative which has, or is close to having, a one-to-one relationship with an underlying asset in terms of price movements. In other words, when there’s a change in the underlying product’s value, you would expect to see the derivative price move in the same direction and with a similar magnitude.
Delta is a measure of a derivative’s sensitivity to movements in an underlying asset’s value. So delta one products have a delta of one.
Delta one products differ from options, as in that the holder does not have the option of exercising a right to either buy or sell at an agreed price. However, these products can be synthetically created using a combination of options to achieve the same result.
Common examples of delta one products are exchange-traded funds (ETFs), exchange-traded notes (ETNs), futures and forwards.
Learn more about ETFs
Find accumulated distribution ETFs using our ETF screener or learn more about ETF trading with IG.
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