What is Synthetic Position?
Synthetic Position — Recreating the payoff of one instrument using others — e.g. a synthetic long = buy a call + sell a put at the same strike.
In simple terms
A synthetic future replicates a futures position with options.
Why Synthetic Position matters when you invest
Understanding synthetic position helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.
Synthetic Position — frequently asked questions
What is Synthetic Position?
Recreating the payoff of one instrument using others — e.g. a synthetic long = buy a call + sell a put at the same strike.
What does Synthetic Position mean in the stock market?
Recreating the payoff of one instrument using others — e.g. a synthetic long = buy a call + sell a put at the same strike. A synthetic future replicates a futures position with options.
Can you give an example of Synthetic Position?
A synthetic future replicates a futures position with options.
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