What is a Synthetic Forward Contract?

A synthetic forward contract uses call and put options with the same strike price and time to expiry to create an offsetting forward position. An investor can buy/sell a call option and sell/buy a put option with the same strike price and expiration date with the intent being to mimic a regular forward contract. Synthetic forward contracts are also called synthetic futures contracts. On HootDex all when available, FCD’s for all digital assets commence as well as settle with the digital asset PECU.