synthetic futures

Definition of "synthetic futures"
  1. A combination of call and put options with the same expiration date and strike price, which mimics a futures position
How to use "synthetic futures" in a sentence
  1. Investment firms utilize synthetic futures to gain exposure to stock without physically owning it.
  2. In volatile markets, some traders prefer synthetic futures over traditional futures because of their flexibility.
  3. Synthetic futures can hedge risk by offering the potential for gains in different market scenarios.

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