Synthetic Futures

This Issue in United States

Concept of Synthetic Futures in Futures Trading

In this context of financial law, the following is a definition of Synthetic Futures: 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.