Synthetic instruments

What are the Synthetic instruments?

Synthetic instruments panel is a grouping of synthetic instruments used for analyzing the risk/return allocation of synthetic instruments. Users can create their own "combined" synthetic instruments and trade it similarly to a standard one. Synthetic instruments open up possibilities for pair trading, portfolio trading, and arbitrage trading.

To create new Synthetic instruments, select Tools -> Synthetic instruments.

How to create new Synthetic instruments?

After clicking on the Synthetic instruments icon from the Tools menu, the following window will be shown:

Double click on SYNTHETIC0 to change the name.

How to add Synthetic instruments?

1) Right-click on the empty space to add or remove a synthetic instrument.

  • From lookup – the symbol can be selected from the lookup;

  • From lists of symbols – symbols can be added from previously created lists in the panel Watchlist.

3) Next edit the coefficient of the symbol in the Coefficient column. Click on coefficient to change it. If the coefficient is a positive value, the symbol will be bought when the synthetic instrument is traded. Likewise, if the coefficient is a negative value, the symbol will be sold.

To delete symbol, simply right click on it and select Remove symbol or click the button in Remove column.

When created, the Synthetic instruments will be available in the list of symbols and can be utilized similar to any other symbol. Synthetic instruments can be added to a Chart and traded in Order entry.

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