📉 DV01: Fixed income's delta

Similarly to delta, an indicator that reflects the option price’s sensitivity to a change in the underlying asset price, DV01 of a given position in fixed-income trading is a dollar value of 1 basis point shift in the market rate.

DV01 is the most common metric fixed-income traders use to estimate the impact of potential market movements on their PnL.

DV01 is primarily determined by two factors:

• The size of the position

• Time to maturity

A couple of quick examples to illustrate the impact of DV01 on the value of a trader's position are shown below. In all cases, the trader is going long (Payer) in Binance ETHUSDT Perp Funding Future, opening a position on May 10th, 2024:

Notional (size) impact

Size	Expiry Month	DV01	Impact of ±1% move
50,000 USDT	Jun-24 (49 days TTM)	0.67 USDT	±67 USDT
100,000 USDT	Jun-24 (49 days TTM)	1.34 USDT	±134 USDT

Time to maturity (TTM) impact

Size	Expiry Month	DV01	Impact of ±1% move
100,000 USDT	May-24 (21 days TTM)	0.57 USDT	±57 USDT
100,000 USDT	Jun-24 (49 days TTM)	1.34 USDT	±134 USDT