SYNTHETIC PUT

Trading strategy combining the short sale and the long-call position of a security, seeking to protect the holder against increase in the stock’s price. The strategy creates a synthetic put position with almost the same risk-reward attributes like a straightforward put position and additional advantage such as flexibility and liquidity. Institutional investors often use this to conceal their trading bias on a certain security.

Back
SYNTHETIC LETTER OF CREDIT
ACTIVE PARTNER
InstaForex
© 2022, ForexPedia, Dictionary of Forex All Right Reserved | Contact Us | Term of Use |
UP
UP