Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

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. 

 

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