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What Is “Delta One” Trading in Derivatives?

"Delta One" refers to trading strategies where the payoff is linearly dependent on the underlying asset's price movement, meaning the Delta is close to 1.0 or -1.0. Examples include futures, forwards, and swap contracts, or deep in-the-money options.

These products essentially mimic the risk and return of holding the underlying asset directly, hence the term "Delta One."

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