HomeDefinitionsCompareDebt Synthetic forward positionThe financial definition for Synthetic forward position:A forward position constructed through borrowing in one currency, lending in another currency, and offsetting these transactions in the spot exchange market. Similar MatchesSynthetic putSynthetic putA strategy equivalent in risk to purchasing a put option where an investor sells stock short and buys a call. Synthetic stockSynthetic stockAn option strategy that is equivalent to the underlying stock. A long call and a short put is synthetic long stock. A long put and a short call is sythetic short stock. SyntheticsSyntheticsCustomized hybrid instruments created by blending an underlying price on a cash instrument with the price of a derivative instrument. It is a combination of security holdings that mimics the price movement of another single security (i.e., synthetic call: long position in a stock combined with a put on that position; a protected long sale; synthetic put: short position in a stock combined with a call on that position; a protected short sale). Click to compare definitions of Synthetic forward position Click to view definitions beginning sy |