Synthetic Futures

What is Synthetic Futures?

Synthetic Futures meaning A position created by combining call and put options. A synthetic long futures contract 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.

 

reference: U.S. COMMODITY FUTURES TRADING COMMISSION – CFTC Glossary