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Derivatives




Synthetic Swing Trading


An option or futures strategy which involves establishing positions with high deltas by combining long and short options, or long options and long and short futures contracts. In other words, it involves the use of option spreads or a combination of option and futures positions to establish a trade that is a toned-down equivalent to a futures (outright futures). This helps provide a trader with similar or identical risk-reward profiles as that of a futures.



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Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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