> For the complete documentation index, see [llms.txt](https://eako-capital.gitbook.io/eako-user-guide/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://eako-capital.gitbook.io/eako-user-guide/synthetic-forward.md).

# Synthetic Forward

Replicating traditional outright FX forwards by both buying and selling options

## Long Synthetic Forward

{% hint style="info" %}
A Long Synthetic Forward is a bullish directional strategy which is a combination of a Long Call and a Short Put with the same strike price and expiration.
{% endhint %}

### **Payoff Diagram:**

<figure><img src="https://3557203473-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FYQ7mk2lqrd7KNTuAuSYT%2Fuploads%2Fd3stfZO8LGyZBpXfF3NQ%2FRHS%20SynFX.png?alt=media&amp;token=7c122f2b-c8a4-423f-88b9-93d0b65fdd44" alt="Long Synthetic Forward Payoff Profile"><figcaption></figcaption></figure>

**Direction Assumption:** Bullish

**Maximum Profit:** Unlimited

**Maximum Loss:** Unlimited

**Breakeven Price:** Price of Underlying during entry.

**Theta:** Passage of Time -> Neutral

**Volatility:** Neutral

## Short Synthetic Forward

{% hint style="info" %}
A Short Synthetic Forward is a bearish directional strategy which is a combination of a Long Put and a Short Call with the same strike price and expiration.
{% endhint %}

### **Payoff Diagram:**

<figure><img src="https://3557203473-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FYQ7mk2lqrd7KNTuAuSYT%2Fuploads%2FjOVsyLHqt2Fq55ira0qi%2FLHS%20SynFX.png?alt=media&amp;token=ef33598b-c8ab-457e-bb7c-2908edda9df7" alt="Short Synthetic Forward Payoff Profile"><figcaption></figcaption></figure>

**Direction Assumption:** Bearish

**Maximum Profit:** Unlimited

**Maximum Loss:** Unlimited

**Breakeven Price:** Price of underlying during entry.

**Theta:** Passage of Time -> Neutral

**Volatility:** Neutral