A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - X - Y - Z

What is a Delta One product?

“Delta One” products take their name from Delta (Δ), which is a term used in the trading of derivatives (and options in particular) that measures their sensitivity to changes in the underlying asset. The Delta of an instrument is therefore defined mathematically as the first-order derivative of its value relative to the price of the underlying asset

A Delta One product is simply a product that has a delta of one. It is therefore a derivative with a linear and symmetrical payoff profile, since its delta remains around 1 regardless of changes in the underlying asset. It is therefore a product with no optionality, since options have deltas that increase with a rise of the underlying asset. Examples of “delta one” products are exchange-traded funds (ETFs), equity swaps, futures and forwards. Because the price of these products closely tracks that of their underlying assets and the risk-free rate, their delta will be close to one.

Delta One trading desks

Delta One trading desks are part of the equity derivatives departments of large investment banks. Although these products do not have optionality, they can be built from options using the parity between calls and puts. These desks generate most of their revenues from the arbitrage set-up of strategies linked to the various Delta One products as well as from related activities, such as dividend arbitrage between different products or stock index arbitrage processed on different trading platforms.

Discover

Our Delta One Capabilities

Our latest news and insights

Sustainable Aviation Fuel: crucial for helping reducing aviation’s carbon emissions
Sustainable Aviation Fuel (SAF) can be produced from renewable sources and has the potential to decarbonize aviation...
Expert views
Sustainable Aviation Fuel (SAF) can be produced from renewable sources and has the potential to decarbonize aviation without major infrastructure changes. However, the market faces challenges. Societe Generale is actively supporting the emergence of the SAF ecosystem by advising developers on funding and participating in initiatives aimed at promoting...
Sustainable Aviation Fuel: crucial for helping reducing aviation’s carbon emissions
EBAday 2025
We are proud to be an official sponsor of the 20th edition of EBAday, the annual summit for the leading payments and...
Expert views
We are proud to be an official sponsor of the 20th edition of EBAday, the annual summit for the leading payments and transaction banking executives, which will take place on 27 and 28 May, at the Carrousel du Louvre in Paris.
EBAday 2025
Trade Tensions: What Are the Consequences for Trade Finance?
Although expected and anticipated, the trade war that began in early 2025 has struck minds with its magnitude and...
Expert views
Although expected and anticipated, the trade war that began in early 2025 has struck minds with its magnitude and numerous twists. As this uncertain context weighs on international trade, Emmanuelle Petelle, Deputy Head of Trade Services, assesses the stakes and challenges of Trade Finance for the coming months.
Trade Tensions: What Are the Consequences for Trade Finance?
More results google link