Exchange Currency

synthetic position

A position that is utilized in the creation of a risk/reward profile for various options positions. It is performed by combining the put and call options positions including their underlying asset (stock) through buying of options and stocks. Synthetic position can act as individual option strategy.

Related information about synthetic position:
  1. Synthetic position - Wikipedia, the free encyclopedia
    In finance, a synthetic position is a way to create the payoff of a financial instrument using other financial instruments. A synthetic position can be created by ...
     
  2. Synthetic Position Explained | Online Option Trading Guide
    Synthetic Position. There is a synthetic equivalent for all of the basic positions in an underlying security and its corresponding options. In other words, the ...
     
  3. Synthetic Positions by OptionTradingpedia.com
    That's what this synthetic position is trying to say. ... Long Stocks contributes the unlimited loss potential to the synthetic position while the short call limits the ...
     
  4. Synthetic Options Provide Real Advantages
    Apr 10, 2008 ... This is just one benefit of putting on a synthetic position. A protective put can then be purchased for only $2,000. The total cost of the synthetic ...
     
  5. Creating Profits Through Synthetic Positions | OptionsCity
    Do you know what a synthetic position is? We know that a standard position is when an investor buys or sells an underlying instrument; which could be a futures ...
     
  6. Options trading: Five reasons to use synthetic positions for swing ...
    Nov 11, 2010 ... This synthetic position works best at the bottom of the swing, when ... In some cases, you can set up a synthetic position and earn a small credit.
     
  7. Put/Call Parity and Synthetic Positions
    Looking at the various positions and their equivalent synthetics, if the risks and rewards are the same (across the same strike prices) then a synthetic position ...
     
  8. What is synthetic position? definition and meaning
    Definition of synthetic position: A position that is utilized in the creation of a risk/ reward profile for various options positions. It is performed by combining the put ...