Delta one products are financial derivatives that have no optionality and as such have a delta of (or very close to) one – meaning that for a given instantaneous move in the price of the underlying asset there is expected to be an identical move in the price of the derivative.
FT Alphaville has described delta one trading as "one of the hottest areas in banking"[2] and "...the last domain of prop trading in the banking sector, where via market-making activities, traders can still get away with taking ample risks."
The Financial Times also describes delta one desks as akin to the special forces of trading.
Examples of delta one products are Exchange-traded funds, equity swaps, custom baskets, linear certificates, futures, forwards, exchange-traded notes, trackers, and Forward rate agreements.
[citation needed] Two high-profile cases of losses resulting from rogue trading (those of Jérôme Kerviel at Société Générale and Kweku Adoboli at UBS) involved delta one traders.