A Short Synthetic Future combines selling a call and buying a put at the same strike price and expiration. This mimics shorting the stock without actually borrowing shares. You profit dollar-for-dollar with stock price decreases below the strike, but also lose dollar-for-dollar if it rises above. It's useful when you want short exposure with less capital or in markets where shorting the underlying asset is difficult.
Book your first demo and get an extra 20% off.
Book a Demo