EAKO - User Guide
  • Guides
  • EAKO User Guide
  • Glossary
  • Strategies
  • Call Option
  • Put Option
  • Synthetic Forward
  • Extendible Forward
  • Risk Reversal / FX Collar
  • Participating Forward
  • Cap Loss Forward
  • Knock-In Forward
  • KIKO
  • Fade Forward
  • Ratio Knock-Out Forward
  • TARF
  • Liability Knock-Out TARF
  • EKI TARF
  • Pivot TARF
  • EKI Pivot TARF
  • Barrier Options
    • Introduction
    • Types of Barriers
    • Time Aspect
    • Knock-In
    • Knock-Out
    • Knock In Knock-Out
  • Variations on Barrier Options
    • Double Knock-In
    • Double Knock-Out
    • European Knock-Out
    • Knock-In European Knock-Out
    • Knock-Out European Knock-Out
    • Performance Knock-In
    • Performance Knock-Out
    • Partial Knock-In
    • Partial Knock-Out
    • Partial Double Knock-Out
    • Forward Knock-In
    • Forward Knock-Out
    • Forward Double Knock-Out
    • Forward Knock-In Knock-Out
    • Knock-Out with Rebate
    • Discrete Knock-Out
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  • Long Synthetic Forward
  • Payoff Diagram:
  • Short Synthetic Forward
  • Payoff Diagram:

Synthetic Forward

Replicating traditional outright FX forwards by both buying and selling options

PreviousPut OptionNextExtendible Forward

Last updated 2 years ago

Long Synthetic Forward

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.

Payoff Diagram:

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

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.

Payoff Diagram:

Direction Assumption: Bearish

Maximum Profit: Unlimited

Maximum Loss: Unlimited

Breakeven Price: Price of underlying during entry.

Theta: Passage of Time -> Neutral

Volatility: Neutral

Long Synthetic Forward Payoff Profile
Short Synthetic Forward Payoff Profile