Synthetic Futures Law and Legal Definition
Synthetic futures refers to a position created by combining call and put options. A synthetic long futures position is created by combining a long call option and a short put option for the same expiration date and the same strike price. A synthetic short futures contract is created by combining a long put and a short call with the same expiration date and the same strike price.
Legal Definition list
Related Legal Terms
- Affiliate of a Futures Commission Merchant, Commodity Trading Advisor, Commodity Pool Operator or Introducing Broker
- Commodity Futures Contract
- Commodity Futures Trading Commission
- Foreign Futures and Options Broker
- Foreign Futures and Options Customer Omnibus Account
- Foreign Futures Authority
- Foreign Futures Commission Merchant
- Futures
- Futures Commission Merchant
- Futures Contract
