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Synthetic Index
(redirected from Synthetic Indices)

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Synthetic Index
The purchase of futures contracts and/or options such that one's exposure and potential payout resemble that of an index. One creates a synthetic index if one believes doing so will result in a higher return than a security tracking a real index.


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The CDX indices are the most widely traded synthetic indices in North America and the universe of traded names in the credit derivatives market has grown dramatically since the launch of CDX.
NEW YORK -- CDS IndexCo LLC ("CDS IndexCo"), a consortium of 16 investment banks that combined for the creation of tradable synthetic indices, and Markit Group Limited ("Markit"), the leading provider of independent data, portfolio valuations and OTC derivatives trade processing, announced today that the roll of ABX.
Traders can also use LiveWire's full-featured Portfolio Manager to view their portfolio position's ROI in real-time, and create synthetic indices based on weighted combination of stocks and indices.
 
 
 
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