Synthetic

What Does It Mean?
What Does Synthetic Mean?
A financial instrument that is created artificially by simulating another instrument with the combined features of a collection of other assets.
Investopedia Says
Investopedia explains Synthetic
For example, you can create a synthetic stock by purchasing a call option and simultaneously selling a put option on the same stock. The synthetic stock would have the same capital-gain potential as the underlying security.
Related Links
Rate this Term: Your Rating:    Overall Rating: Vote Now!
Sponsored Links
MARKETPLACE
The Investopedia Guide to Wall Speak
TRADING CENTER
CURRENT HIGH YIELD SAVINGS RATES
Type
Overnight avgs
Rate data provided by
Bankrate.com
add investopedia foot
www.investopedia.com