What Are Synthetic Futures Contract?

Posted by on Jun 13, 2017 in Uncategorized


An investment program where profit opportunities imitate an extended future position, where it is not required to purchase the futures immediately or directly is known as Synthetic Futures Contract. The benefit of a synthetic contract is that the investor gets rewarded because of an upward surge in prices when he buys an at-the-money call option and sells it for the same put option based on the value of the underlying security.

In modern finance, the word ‘synthetic’ implies the payoff of one financial instrument using the purchase and sales of other underlying financial instruments or derivatives. The synthetic financial instruments adapt the characteristics of other financial instruments which have varied cash flow patterns and therefore are best to earn good returns and mitigate risks.

The synthetic futures contract requires that the buying and selling options be held by one and the same investor and therefore have the same strike rate and expiry date.

The merits of the synthetic futures contract:

It is beneficial to mitigate risks when investors employ shrewd risk management tactics.

The forward position strategy employed in a synthetic contract gives some flexibility and liquidity to the investment and helps investors to cover up on their trading preferences on any given security.

Synthetic futures options work well in binary markets too, where the traders can benefit from the market swings.

These financial derivatives are useful in binary options trading and help in generating digital income too. The Millionaire Blueprint is one such automated robotic software which claims to have a very high success rate. The investors or users of this app need not possess any prior trading knowledge or market skills and insights.

With the Millionaire Blueprint, one can register for free and traders can utilize the synthetic futures to manage their virtual finances. When the prospective investors register with the software the auto-robot ensures income generation of the users.

This app comes with an easy user interface and after the initial investment by the users, the robot does the trading and income generation.

The Limitations:

The Millionaire Blueprint requires a continuous internet connection with great speed and the tall claims seem to be too far-fetched rather than believable. Many binary traders claim the platform to be fake, unreliable, and misleading.

These synthetic options are volatile because they are easily influenced by market fluctuations and increase the opportunity costs of the investors.


Synthetic futures contracts and robots like the Millionaire Blueprint reduce investment risks, but they need to be constantly monitored and cannot be relied on as long-term investment options. It is best to look at them as small investment opportunities in the short term.

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