Why would anyone do a long synthetic or a short synthetic? What is the difference between...

Why would anyone do a long synthetic or a short synthetic? What is the difference between a long synthetic and a long currency? What is the difference between a short synthetic and a short currency?

Expert Solution

ANSWER:-

People go for long manufactured in light of the fact that they are bullish about the market and simultaneously they needed to face the boundless challenge and needs to increase boundless benefit at the minimal effort(low cost) speculation to buying the stock and that is the reason they go for long synthetic.
People go for long synthetic in light of the fact that they are bearish about the market and simultaneously they needed to face the boundless challenge and needs to increase boundless benefit at the minimal effort(low cost) investment to buying the stock and that is the reason they go for long synthetic.
A long currency is utilized when you need to make the installment in future. while then again hand synthetic long stock is a result for long stock.
A short currency is utilized when you need to get the installment in future. while then again hand synthetic short stock is a result for short stock.

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Rahul Sunny answered 2 years ago

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