Delta One

Under Delta One understands a special group of financial derivatives that evolve in a quasi 1:1 correlation to their underlying.

Background

The base value for delta -one products can be of any type, for example, stocks, commodities or indices. Since it is often technically difficult an underlying asset with a lever really provided exactly tie off, construct the issuing banks in accordance with man-made products, which they use some of the risk yourself. Prominent examples of Delta -One products are exchange-traded funds, equity swaps and futures.